The potential area of partnership might be the use of BYD batteries in new JLR plug-in models. Most importantly, the cells may be produced in the UK.
BYD's lithium-ion cell gigafactory would be operated independently of JLR.
The JLR battery packs will be produced in an all-new Battery Assembly Centre at Hams Hall (from 2020), which will have an installed capacity of 150,000 units annually.
The electric drive unit will be produced at the Wolverhampton Engine Manufacturing Centre (EMC).
The rumour says also that JLR and BYD are considering collaboration on electric propulsion systems (JLR already signed up for the BMW's “Gen 5” eDrive), but that is probably far less important than securing a battery deal.
For BYD, Europe was initially mostly a market for electric buses. The Chinese company launched EV bus production in Hungary and France, as well as supplied rolling chassis for Alexander Dennis Limited's electric buses in the UK.
This year, BYD finally enters the European passenger EV market, starting with Norway.