BYD’s battery subsidiary FinDreams Battery has signed a cooperation agreement with Changsha Fusheng Technology to develop Blade Battery systems for industrial and mining rail locomotives. The agreement was signed on September 7 at BYD’s Pingshan headquarters in Shenzhen, according to a company announcement. The partnership targets locomotives used in industrial facilities, mines and railway yards, including shunting and on-site transportation. The agreement says that those new rail-vehicle Blade batteries must be automotive-grade. FinDreams will provide support for battery research, development, and manufacturing. Changsha Fusheng will handle system integration and application development, drawing on its battery management systems and electronic control technology. This move marks BYD’s first entry into the rail locomotive segment, expanding its Blade Battery technology beyond passenger cars and commercial vehicles.
What the BYD-FinDreams Partnership Covers
Under the agreement, FinDreams Battery will lead research, development, and manufacturing of the Blade Battery cells and packs, while Changsha Fusheng Technology will manage system integration and application development. Changsha Fusheng specializes in integrated energy systems for equipment operating within defined sites, and its role will be to integrate Blade batteries with the control systems required for industrial rail operations. The partnership aims to deliver automotive-grade battery systems for locomotives used in industrial facilities, mines, and railway yards, including shunting and on-site transportation.
The announcement did not disclose the agreement’s value, battery supply volumes, locomotive specifications, or a timetable for commercial operation. This lack of detail suggests the project is still in its early stages, but the strategic intent is clear: to electrify heavy-duty rail applications with proven battery technology.
Why Automotive-Grade Batteries Matter for Rail
The requirement that the new rail-vehicle Blade batteries be automotive-grade is significant. Automotive-grade batteries must meet stringent safety, durability, and performance standards, including resistance to vibration, temperature extremes, and repeated cycling. Industrial and mining environments are even harsher than typical road conditions, with heavy loads, constant operation, and exposure to dust and moisture.
By leveraging automotive-grade Blade Battery technology, BYD and Changsha Fusheng aim to deliver reliable, long-life battery systems for locomotives that operate continuously in demanding settings. This approach also benefits from economies of scale, as Blade Battery cells are already mass-produced for electric vehicles, potentially reducing costs and improving supply chain efficiency. For overseas buyers, this signals that BYD’s battery technology is versatile and can be adapted to specialized industrial applications.
FinDreams Expands Beyond Passenger EVs
The deal adds to FinDreams’ recent partnerships in mining and industrial transport. On September 5, the battery supplier signed a similar agreement with Zero Carbon Engine Technology Group. The companies plan to explore projects in Mongolia, including electric mining trucks. While rail locomotives are something new for BYD, heavy-duty trucks are not really. In June 2026, BYD delivered 100 T31 electric dump trucks, each equipped with a 424 kWh Blade Battery, to construction transport companies in Shenzhen.
Its Q3 electric tractor truck also uses Blade Batteries and was showcased alongside the T31 at an April event in Hunan, where BYD secured agreements for 150 new-energy heavy trucks. The Q3 electric tractor will launch at IAA in Germany later this year. These moves demonstrate FinDreams’ strategy to diversify its customer base and application areas, reducing reliance on the passenger car market.
BYD’s Position in the Chinese Battery Market
BYD is the number two battery supplier in China. Between January and July 2026, the company installed 72 GWh of EV batteries domestically, conquering an 18% market share. That is, however, 13% down from the same period last year. BYD’s main competitor, CATL, meanwhile, installed 186 GWh of EV batteries in China, having a 46% market share. Despite its dominant position, that is a 22% growth compared with the same period the year before.
And automakers are aware of CATL’s growing hegemony and are moving to reduce their reliance on CATL and gain greater control over battery supply. For example, Li Auto (CATL’s fourth-largest EV battery customer in April) is shifting to batteries designed in-house and manufactured by Sunwoda, in which it announced a 2.65 billion yuan investment. The move follows Xpeng’s earlier shift away from CATL, suggesting that the battery maker’s scale does not guarantee customer loyalty. For BYD, expanding into industrial and rail applications could help offset its declining domestic EV battery share and open new revenue streams.
Implications for Overseas Buyers and Export Markets
For overseas buyers sourcing Chinese EVs and batteries, this development highlights the growing versatility of BYD’s Blade Battery technology. While the initial focus is on the Chinese domestic market, successful deployment in industrial rail could pave the way for export opportunities in mining, logistics, and rail sectors globally. BYD’s Blade Battery is already known for its safety and energy density, and its adaptation to rail locomotives could attract interest from international industrial operators.
Moreover, BYD’s expanding portfolio of commercial vehicles, including electric dump trucks and tractors, offers wholesale buyers a range of options. As the global push for electrification extends to heavy-duty and off-road applications, BYD’s moves in rail and mining position it as a comprehensive supplier of new-energy solutions. For those looking to source BYD vehicles or batteries, working through official channels ensures access to genuine products and support. Buyers can explore more about BYD’s commercial vehicle lineup and battery technology on BYD Car China.
Challenges and Opportunities in Rail Electrification
Electrifying rail locomotives, especially in industrial and mining settings, presents unique challenges. These vehicles often operate in remote locations with limited charging infrastructure, require high torque and continuous power, and must withstand extreme conditions. BYD’s Blade Battery, with its lithium iron phosphate (LFP) chemistry, offers advantages in safety, cycle life, and thermal stability, making it suitable for such applications.
However, the integration of battery systems into locomotives requires sophisticated battery management and control systems, which is where Changsha Fusheng’s expertise comes in. The partnership’s success will depend on overcoming technical hurdles and demonstrating cost-effectiveness compared to diesel or overhead electric systems. If successful, it could accelerate the transition to zero-emission rail operations in China and beyond, creating new demand for battery systems.
What to Watch Next
Key details remain undisclosed, including the agreement’s value, battery supply volumes, locomotive specifications, and commercial timeline. Watch for pilot projects and technical milestones from FinDreams and Changsha Fusheng. Also monitor BYD’s battery market share trends and whether its industrial partnerships help offset declines in the passenger EV segment. The launch of the Q3 electric tractor at IAA in Germany later this year will provide further insight into BYD’s commercial vehicle strategy. As always, verify sourcing through official channels.
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