BYD gets bank's support for new energy project

Shanghai, December 4 (Gasgoo.com) China's battery and electric car maker BYD Co., Ltd. has received 15 billion yuan ($2.2 billion) in credit from the Bank of China, the bank said yesterday, Reuters reported. The capital may be used for BYD's new energy project.

The two companies signed a framework agreement for strategic cooperation, involving financial support of 15 billion yuan, Bank of China said in a statement on its website (www.boc.cn), , saying the bank will support BYD's development of new energy technologies, among others.

An analyst based in Hong Kong, where BYD is listed, said that BYD does not lack cash for its existing operations and is likely to use the credit to invest in new areas, such as solar energy and new energy vehicles.

Shenzhen-based BYD, 10% owned by U.S. billionaire Warren Buffett's Berkshire Hathaway, has posted a Jan-Sept net profit of 2.34 billion yuan, sharply up from 777.8 million yuan of a year earlier.

Last month, BYD announced its solar energy plans, including the solar power station, energy storage, and new energy vehicles, with solar energy to be a driving force of BYD's electric vehicles.