Samsung SDI is getting more serious about EVs with the purchase of the EV battery pack division of Magna International. Under the agreement, Samsung SDI will acquire Magna Steyr including all 264 employees, production and development sites. Terms of the deal were not disclosed.
Magna Steyr is a Austria-based division of Canada’s Magna International, one of the largest automobile part suppliers in North America.
Samsung has long provided parts for electronic vehicles and this purchase should help shore up the company’s investments in the area. For instance Samsung SDI currently supplies BMW with battery units for its i3 and i8 vehicles, a contact that was recently renewed. The company also provides Apple with batteries for its products.
“The acquisition is a key strategic step for Samsung SDI to strengthen the competitiveness of our automotive battery business,” said Namseong Cho, President and CEO of Samsung SDI, in a released statement. “It will provide new momentum to expand our business and customer base.”
It’s unclear at this point if Samsung is going to move into building an EV like rival Apple is said to be doing. However, Samsung Ventures recently led EV maker Seeo’s $17 million Series E and closed a $3.5 billion purchase of Cheil Industries, which boasts a robust chemical and materials supply chain. If nothing else, the acquisition of Magna Steyr should better position Samsung SDI to provide parts in the EV marketplace.Featured Image: Shutterstock