Berkshire Hathaway (BRK) has already made an estimated 430% on its 11-month old Chinese stock pick, battery maker BYD.
Now it’s likely to make even more as BYD just landed a contract to supply one of China’s largest auto makers with lithium-ion batteries for hybrid cars.
Apparently the name of the company has yet to be disclosed, but thebeijingnews.com says it was likely Shanghai Automotive Industry Corp (SAIC). Regardless, it’s a big deal for little BYD since it’s their first domestic OEM win for BYD’s advanced lithium-ion batteries.
As if this news weren’t enough, BYD also recently won local government subsidies for production of its plug-in F3Dm hybrid car.
China Daily: “Being the only sedan on the list, we qualify for the highest subsidy level of as much as 50,000 yuan ($7316) per unit. Hence, we are optimistic about the F3DM model’s sales to individual customers, which will start next month,” said a BYD spokesperson.
Thus the company has just won a major battery supply deal, plus is pushing hard on it’s own brand of electric cars. Warren Buffett has clearly picked his friends wisely in China.
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