South Korea’s Samsung SDI Co. Ltd. has signalled its intentions to move into the electric vehicle market in a major way by signing an agreement to acquire the battery pack business of Magna International, an international global automotive supplier.
Financial details of the acquisition were not disclosed. Under the agreement, Samsung SDI will acquire the entire battery pack business from Magna Steyr, an Austria-based operating unit of Magna International, including all 264 employees, production and development sites and existing contracts of the business.
The acquisition is expected to enhance Samsung SDI’s capabilities in batteries for electric vehicles by combining the company’s established battery cells and modules business with that of Magna’s in battery packs, Samsung SDI said.
Magna’s advanced technology and experience in providing global automakers with battery packs will also help Samsung SDI secure customers in the fast-growing automotive battery markets in Europe, North America and China, the Korean company said.
The transaction is expected to be completed during the first half of 2015, pending regulatory approvals.
The global market for electric vehicles, including hybrid and plug-in hybrid models, is forecast to reach 7.7 million vehicles by 2020, compared with 2.1 million in 2014, according to research firms B3 and IHS.