Warren Buffett has made a deal for 10 percent of BYD, a China-based manufacturer of green cars, through a subsidiary of Berkshire Hathaway. MidAmerican Energy Holdings will pay $230 million for 225 million shares of BYD, a company that makes electric cars, hybrid vehicles and rechargeable batteries. The purchase has sent the price of BYD's shares — listed in Hong Kong — up by 70 percent, settling at HK$11.90, a gain of 42 percent.

While Buffett is known for his savvy investments, his purchase of BDK stock is about more than rising stock prices. MidAmerican Energy has a number of opportunities for collaboration with BDK.

"From MidAmerican's point of view, of course they see the technology, the battery technology possessed by BYD, to be very attractive," Sandra Mak, spokeswoman for MidAmerican, told the Cleantech Group. "And they see that technology to be the quintessential piece that is required to, number one, take the development or R&D of electric vehicles from the current, lukewarm state to really a very practical and usable state."

BYD is expected to have its first electric car on sale in China next year, and will be bringing its hybrids to the United States and Europe by 2010. Among other benefits, the MidAmerican Energy deal may provide the capital necessary to move those projects forward. The deal remains tentative; it is subject to approval from mainland China authorities as well as BYD shareholders.

Image — MidAmerican Energy