Buffett backs EV batteries

[kristopher]

By Ilaina Jonas and Polly Yam
Buffett unit buys stake in HK battery firm BYD

NEW YORK/HONG KONG (Reuters) - MidAmerican Energy Holdings Co, a unit of U.S. billionaire investor Warren Buffett's Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz), said it would pay $230 million for a 10 percent stake in Chinese rechargeable battery firm BYD Co Ltd (1211.HK: Quote, Profile, Research, Stock Buzz) to support its 'green' technologies.

The deal gives MidAmerican a foothold in the Hong Kong-listed company which is developing electric-hybrid cars it expects to start selling in China later this year and Europe by 2010.

"Mr. Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him," Buffett, the chairman and chief executive of Berkshire said in a statement, referring to the chairman of BYD.

David Sokol, chairman of MidAmerican, said the technologies being developed by BYD will be an integral part of the future for the care of the environment especially relating to global climate change.
...

But BNP also believed BYD deserved a 20 percent premium over the sector average because BYD had explosive revenue growth in both the automotive and handset businesses despite earnings growth momentum being dragged down by a deteriorating gross margin.

Hong Kong-listed BYD has invested in the manufacturing of electric cars in China and plans to sell the cars to overseas markets.

Israel's Clal Industries and Investments (CII.TA: Quote, Profile, Research, Stock Buzz), a unit of conglomerate IDB Development (IDBD.TA: Quote, Profile, Research, Stock Buzz), said on Thursday it signed a deal to import electric cars from BYD and sell them in Israel.

BYD's electric cars are expected in Israel and Europe by 2010. The firm has said the cars could travel 300 km (190 miles) on a single charge. A full charge needs nine hours using its lithium-ion batteries, although they could be charged to 80 percent capacity in 15 minutes.
http://www.reuters.com/article/innovationNews/idUSTRE48Q13E20080927?sp=true

[ThePhoenix]

1. Buffett Unit Buys Stake In HK Battery Firm

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