AKIPRESS.COM - Samsung Electronics is buying a stake in Chinese electric vehicle and battery maker BYD, according to The Korea Times.

"Samsung reached an agreement to directly invest in BYD, which means that we will purchase a stake in the Chinese company," the company said Friday. "Further details will be announced soon."

The company said the agreement will help Samsung strengthen its electric vehicle component and smartphone parts businesses.

"But the agreement doesn't mean Samsung Electronics will be participating in the management of BYD," it said.

The agreement comes as Samsung's battery unit – Samsung SDI – was excluded from a list of certified electric vehicle suppliers by Beijing.

Officials say the exclusion has shown that the protectionist threat from China is real because Beijing is preparing several measures to boost its local electric vehicle companies.

Therefore, the investment decision could be a key factor in Samsung SDI obtaining battery certification in the fifth certification round, in August. Samsung Electronics is the biggest shareholder in Samsung SDI, with 19.58 percent.

BYD, which counts Berkshire Hathaway as a shareholder, said earlier it was planning to raise up to $2.4 billion to expand capacity and produce batteries for coming advanced electric vehicles.

BYD is one of the Chinese automakers that has been busy selling shares to raise money for research and development to meet Beijing's toughened emissions standards. SAIC Motor said it plans to raise as much as 15 billion yuan through a private share sale to develop its own brands and new-energy vehicles.