- BorgWarner Inc BWA has agreed to invest in Silicon Carbide technology provider Wolfspeed Inc WOLF to support the latter's multi-year capacity expansion plan.
- BorgWarner will invest $500 million in Wolfspeed's financing transaction in exchange for a silicon carbide device capacity corridor.
- Under the multi-year agreement, BorgWarner will be entitled to purchase up to $650 million of devices annually as its requirements increase.
- "We believe this agreement helps ensure that BorgWarner will have a reliable supply of high-quality silicon carbide devices, which are significant to the company's inverter growth plans," said BorgWarner CEO Frédéric Lissalde.
- Wolfspeed and BorgWarner are also exploring a deeper collaboration to accelerate technology development.
- BorgWarner's Charging Forward strategy targets $4.5 billion of electric vehicle revenue for 2025, compared to less than $350 million in 2021.
- In October, Wolfspeed outlined a multi-year, $6.5 billion capacity expansion effort to increase its existing materials capacity by more than 10 times.
- In a separate statement, Wolfspeed said it intends to offer $1.300 billion of its Convertible Senior Notes due 2029 in a private offering.
- Price Action: BWA shares traded lower by 1.00% at $42.36 and WOLF lower by 4.88% at $89.23 in premarket trading on Wednesday.
- Photo Via Company
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BWABorgWarner Inc
$35.370.43%
Edge Rankings
Momentum
64.41
Growth
53.98
Quality
59.84
Value
80.89
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