Buying Batteries Large-scale

Samsung SDI EV batteries.
Samsung SDI EV batteries.

 

Samsung SDI has acquired the battery pack business of the world’s 4th-largest Canadian automotive parts manufacturer, Magna International.

The Korean battery manufacturer announced on Feb. 23 (local time) that it signed an agreement with Magna Steyr to take over the latter’s entire battery pack business unit, Magna Steyr Battery Systems (MSBS) GmbH & Co OG, that specializes in battery packs as an affiliate of Magana Steyr, the Austria-based operation of Magna International.

The deal is expected to enable Samsung SDI to complete an integrated electric car battery business system from cells to modules to packs. The acquisition money, however, was not disclosed because of the privacy of the deal.

Samsung SDI has established global leadership in battery cells and modules, but is rated weak in battery packs. Through this contract, Samsung SDI has come to be able to expand its business and customer base in the fast-growing automotive battery market of Europe, North America, and China by combining its capability in battery cells and modules with Magna’s expertise in battery packs.

The transaction will include all 264 employees, production and development sites, and existing contracts of the business as well as acquisition of a 100 percent stake of MSBS.

Acquisition of the entire battery pack business from Magna Steyr will secure global competitiveness for Samsung SDI, catapulting the Korean company to the number one position in the global automotive battery market.

Samsung SDI set up SB Limotive in 2008, a joint venture for automotive battery business with Bosch, and acquired a 100 percent stake in 2012. The company also acquired Novaled, a German-based OLED material manufacturer, in 2013. Last year, Samsung SDI established a joint venture for the energy storage system business with Chinese firm Sungrow.

According to market researchers B3 and IHS, the global market for electric vehicles, including hybrid and plug-in hybrid models, will grow over 24 percent on average every year, reaching 7.7 million units by 2020, a sharp increase from 2.1 million in 2014.

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