Samsung invests $625M into Chinese EV maker

Electric vehicle manufacturer BYD, already backed by Warren Buffett’s Berkshire, has received a huge investment from electronics and engineering giant Samsung.

Shanghai Samsung Semiconductor bought 52.3 million BYD shares at 57.4 yuan apiece in a private placement that raised 14.5 billion yuan in total from six investors, according to a statement to Shenzhen stock exchange.

Samsung pursued a stake in BYD after its affiliate was among foreign battery makers left off a list of suppliers approved by China, where sales of electric vehicles are surging and the government has sped up construction of charging points.

The world’s largest maker of phones and memory chips said last week investing in BYD would bolster Samsung’s semiconductor business for cars.

BYD will use the proceeds from the placement to fund an expansion in battery production and research and development into new-energy vehicles.

China’s government wants sales of electric vehicles to exceed 3 million units a year by 2025, after surpassing the US last year to become the global market leader.