Published on February 26th, 2015 | by James Ayre1
Samsung SDI Acquiring EV Battery Pack Business Of Magna International
February 26th, 2015 by James Ayre
One of the top energy solutions companies in the world, Samsung SDI Company, is acquiring the battery pack business of the automotive supplier Magna International, according to recent reports.
The acquisition is intended to support and improve the company’s electric vehicle (EV) battery business — by adding the expertise (in battery packs) of Magna International — according to Samsung SDI’s President and CEO Namseong Cho.
“The acquisition is a key strategic step for Samsung SDI to strengthen the competitiveness of our automotive battery business,” stated Cho. “It will provide new momentum to expand our business and customer base.”
It’s funny, as a CleanTechnica commenter was just pointing out the other day that a large delegation of Apple employees recently visited Magna’s facility in Austria. (The comments were made under some of our articles about Apple potentially working on electric cars.)
The acquisition is also apparently intended to help the company secure new customers in China, Europe, and North America.
As per the terms of the acquisition, Samsung SDI will gain the full battery pack business from the Austria-based operating arm of Magna International, known as Magna Steyr — this includes all 264 employees, existing contracts, and all of the company’s production and development sites.
The financial terms of the deal will not be publicly disclosed. The current expectation is that the acquisition be completed sometime during the first half of the year, dependent upon approval from the regulatory authorities.
Considering that the EV industry (which includes the automotive battery industry as well, of course) seems to be at the point of breaking out and capturing a larger chunk of the total automobile market, the move certainly appears to make sense. With the moves being made by Tesla and Panasonic, amongst others, the pressure does seem to be there to do something — or risk getting left in the dust.
Image Credit: Samsung SDI Company