China’s BYD has formed a strategic cooperation agreement with Changan Automobile to produce batteries for electric vehicles.
The companies will manufacture up to 10 GWh of batteries, and have also announced that they will research autonomous driving and various new energy vehicle technologies.
BYD and Changan plan for the total battery production capacity of 10GWh to be reached in two stages. The first will reach 5-6GWh and the second stage 4-5GWh.
They will also work together to recycle EV batteries.
Changan, headquartered in Chongqing, China, is a state-owned enterprise that manufactures passenger cars, microvans, commercial vans and light trucks.
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.
© 2018 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.