Ford Motor’s biggest competitors in terms of electric cars are not American leader Tesla or rival General Motors, but Chinese automakers, CEO Jim Farley said Thursday, as quoted by CNBC and news.ro.

Farley said Chinese companies such as Warren Buffett-backed BYD are ahead of major U.S. automakers and startups in the electric vehicle sector, particularly in battery chemistry and other new technologies.

“We see the Chinese as our main competitor, not GM or Toyota,” Farley said at Morgan Stanley’s Sustainable Finance Summit.

He used BYD as a prime example of a Chinese automaker that has successfully developed and sold electric cars, first in China and now in Europe.

“I like BYD. A fully vertically integrated, aggressive…very, very impressive company. And they’ve always been committed to electric,” Farley said when asked which company is getting electric cars right.

According to LMC Automotive, BYD increased its sales in China from 445,000 units in 2015 to nearly two million last year, ranking among the top five automakers in China.

Farley’s comments echo those of industry experts and investors on the rise of BYD and other state-backed Chinese automakers in China.

“BYD is in a huge position, both in terms of EVs and battery manufacturing,” Philip Ripman, portfolio manager at Storebrand Asset Management, told CNBC Pro Talks last week.

Ripman, who runs the $1 billion sustainability fund Storebrand Global Solutions, pointed to BYD’s development of a cheaper sodium-ion battery technology that could replace lithium batteries.

He noted that they could become common in BYD’s more affordable EVs and help boost profit margins for the automaker.

Farley also noted the advantages of BYD’s battery over the current standard for lithium-ion batteries in the US industry.

Earlier this year, Ford announced a new partnership with China’s Contemporary Amperex Technology Co., or CATL, for a new $3.5 billion plant to produce lower-cost batteries in Michigan.

The plant will produce new lithium iron phosphate (LFP) batteries as opposed to the more expensive nickel cobalt manganese lithium batteries the company currently uses.

The plant, which is expected to open in 2026, will employ about 2,500 people, the Detroit-based automaker said.

Farley touted BYD’s role in developing the technology.

“BYD’s scale is now much larger than Tesla’s, and they’ve developed LFP technology, which is a better battery,” Farley said.

The Ford-CATL deal has been criticized amid tensions between the US and China. In particular, Marco Rubio asked the Biden administration to review the deal, which includes Ford’s licensing of CATL technologies.

The Detroit automaker will own the new facility through a wholly owned subsidiary, rather than operate as a joint venture with CATL.

Farley said that if the policy prevents cheaper electric vehicle technology from entering the US, the consumer will be “cheated” with higher prices.

“We have to solve this in our country. And I think they’re really interesting companies,” Farley said.