Samsung Electronics’ $450 million bid bought them a stake in the Chinese automaker and rechargeable batteries firm, BYD. This investment in electric car manufacturer BYD has confirmed speculation that Samsung Electronics are delving even further into the Electronic Vehicle market. Although not as large of an investment as Panasonic and their billion dollar partnership with Tesla, Samsung Electronics and BYD are setting themselves up to compete in the automotive market.
“This investment will strengthen our chip business for electric cars,” Samsung told the Australian. “We’ll continue to expand our partnership with BYD in various sectors.”
Samsung Group is already a significant player in the car industry through affiliates Samsung SDI and Samsung Electro-Mechanics. Samsung SDI batteries are already fitted into the recently released BMW i8, and are being continually improved upon for efficiency, size, and length of charge. Samsung Electro-Mechanics develops viewing cameras, sensors, WiFi modules, telecommunication modules and other passive car components.
It is believed the company has no intention of participating in the management of BYD, proving the investment to be a strategy for industry growth and motivation for sustainable innovation within the company. Labelling themselves as an eco-friendly and socially responsible company, the investment and continued development in a greener, electric car for Samsung, is no surprise.
“The cleaner air, greener environment is something we can never compromise for all generations,” says Samsung SDI. “Energy changes the world.”
This investment may set the company up for a partnership that allows the batteries designed and manufactured through Samsung SDI to be fitted in the vehicles manufactured by BYD in the future.
There have been no direct moves on the market since the announcement of said partnership, but there is still speculation in the tech world that Samsung may want to make additional moves to secure their footing even more in the automotive industry.
Image credit: Qilai Shen via Bloomberg.