BYD launches ‘Zero Defects’ initiative as battery production reaches 113 GWh in first three quarters of 2025, report says
On December 3, 2025, sources reported that BYD has begun implementing an internal initiative called “Zero Defects” at its battery manufacturing facilities, aiming to standardise production and management processes to a higher level. The plan, which started in the third quarter of 2025, focuses on minimising defects across all stages of battery production, from manufacturing to customer service. The initiative coincides with BYD’s growing role as a battery supplier to other automakers and its expanding stationary energy storage business, making consistent quality and process efficiency a higher priority.
Insiders indicated that the program aims to achieve zero defects throughout the battery lifecycle. BYD is reportedly adjusting personnel structures and production workflows over a 3- to 5-month period to meet industry-leading management standards. The company plans to align its external customer management with international benchmarks by 2026, ultimately aiming to achieve management practices comparable to those of Toyota. The initiative emphasises operational efficiency, error reduction, and standardisation across manufacturing, process control, and customer service.
The timing of the initiative is linked to BYD’s increasing battery output and its rising external supply. In the first three quarters of 2025, BYD’s domestic traction battery production reached 113.42 GWh, of which approximately 23.65 GWh, or 20.85 per cent, was supplied to external customers. This represents a significant increase compared with prior years, when external supply accounted for single-digit percentages of total output. BYD also continues to expand production for stationary energy storage applications, reflecting the company’s broader strategic focus beyond internal vehicle supply.
Industry analysts note that as BYD diversifies its battery operations, consistency in product quality and management becomes critical to maintaining competitiveness and supporting higher utilisation of production capacity. The “Zero Defects” initiative appears designed to ensure that batteries meet both internal and external customer requirements, supporting growth in electric vehicle production and storage systems.
BYD has not released official details regarding specific performance metrics or milestones for the initiative.
