(Reuters) - BorgWarner Inc said on Tuesday it would take a 20 percent stake for an undisclosed amount in battery module and pack supplier Romeo Power Technology, as the U.S. auto parts maker looks to expand its products portfolio for electric vehicles.
As part of the deal, BorgWarner, which makes parts such as turbochargers and all-wheel drive systems, will fill two seats on Romeo Power’s board and form a joint venture, in which the U.S. automotive supplier will have 60 percent stake.
Battery packs will add to BorgWarner’s existing products for hybrid and electric vehicles including electric motors, power electronics, high-voltage battery heaters and onboard battery chargers, the company said.
BorgWarner has made a series of acquisitions to better compete in the fast-growing market for electric and hybrid vehicles, starting with $950 million purchase of electric and hybrid motors maker Remy International Inc in 2015.
The deal with Romeo Power is expected to close in the second quarter of 2019, BorgWarner said.
Reporting by Ankit Ajmera in Bengaluru; Editing by Arun Koyyur