South Korean Samsung SDI Co. said Monday it has acquired the battery pack unit of an Austria-based auto parts supplier, a deal that will give the Korean company a boost to its electric vehicle battery production. Samsung SDI has signed an agreement to take over the entire battery pack division of Magna Steyr Battery Systems GmbH & Co OG, headquartered in Zettling, for an amount undisclosed due to the privacy of the deal, Samsung SDI said in a statement.

"The acquisition is a key strategic step for Samsung SDI to strengthen the competitiveness of our automotive battery business," said Namseong Cho, President and CEO of Samsung SDI. "It will provide new momentum to expand our business and customer base."

The unit will become a Samsung SDI affiliate as of April 1, it added.