Chinese battery and vehicle maker BYD and Volkswagen Group’s premium car brand, Audi, are reportedly in advanced stages of negotiation on an agreement that would see BYD become a key battery supplier for Audi’s EV cars.
The batteries would equip cars the Premium Platform Electric architecture jointly designed by Audi and Porsche engineers.
Audi has announced 15 EVs, which it plans to bring to market by 2025, with the first debuting in the spring of 2022.
Volkswagen has been working with BYD’s Chinese competitor CATL, and has been looking to broaden its battery sourcing as it looks toward a heavily electric vehicle future.
Volkswagen work with CATL goes back to its development of its battery-assisted start/stop system, and CATL also has been working with BMW since 2011.
Volkswagen first began exploring battery development with BYD in 2009.
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.