Samsung SDI Acquires Austria Based Battery Pack Auto Parts Supplier
kpride, Feb. 23, 2015, 8:06 a.m.
Samsung SDI Co., a major South Korean battery producer, said Monday it has acquired the battery pack unit of an Austria-based auto parts supplier, a deal that will give the Korean company a boost to its electric vehicle battery production.
Samsung SDI has signed an agreement to take over the entire battery pack division of Magna Steyr Battery Systems GmbH & Co OG, headquartered in Zettling, for an amount undisclosed due to the privacy of the deal, Samsung SDI said in a statement.
The unit, a subsidiary of Canada-based global auto parts maker Magna International, will become a Samsung SDI affiliate as of April 1, it added. The deal is expected to better enable Samsung SDI, whose main business includes making batteries for hybrid cars, in its capabilities for electric vehicles by having Magna's expertise in battery packs.
Samsung SDI has established a solid footing in global markets with its battery cells, which refer to basic battery materials, and battery modules comprising a dozen battery cells in a frame to protect them from heat and vibration.
The pack comes as the last stage for an electric vehicle battery that combines several modules together and adds a cooling device. "The acquisition is a key strategic step for Samsung SDI to strengthen the competitiveness of our automotive battery business," Chief Executive Officer Cho Nam-seong said.
The global market for electric vehicles, including hybrid and plug-in hybrid models, is forecast to reach 7.7 million units by 2020, compared with 2.1 million in 2014, according to research firms B3 and IHS.