BERKSHIRE Hathaway Inc, owned by billionaire Warren Buffett, has agreed to pay HK$1.8 billion (US$230 million) for a 10-percent stake in BYD Co Ltd, China's largest rechargeable battery maker.

Berkshire Hathaway will buy 225 million BYD shares at HK$8 each through its unit MidAmerican Energy Holdings Co, MidAmerican said in a statement issued through Business Wire. The price is a 4-percent discount to the closing price of HK$8.4 last Friday. The deal is due to be announced today.

Shenzhen-based BYD, primarily engaged in researching, developing, manufacturing and selling rechargeable batteries such as li-ion and nickel batteries, has been diversifying its business to the auto manufacturing, electric automobile and related product sectors.

'We are extremely pleased and grateful that Berkshire Hathaway and MidAmerican will be our long-term investor and partner as we bring our electric vehicles and other environmental protection measures to the global market,' Wang Chuanfu, chairman of BYD, said in the statement.

Omaha, Nebraska-based Berkshire Hathaway has been investing heavily in companies with eco-friendly technology as market demand surged amid higher energy prices and increased environment protection awareness.

David Sokol, chairman of MidAmerican, said as global talks on global climate change and the environment continue, the technologies being developed by BYD will be an integral part of the future.

BYD, set up in 1995, debuted its electric vehicle BYD E6 at the Beijing Autoshow in April. A dual-mode version, which could be powered by both battery and fuels, will begin mass production next year in China despite challenges, such as setting up recharge stations, safety woes as well as higher production costs, that EVs face.

The firm earlier said it aims to start selling gasoline-electric hybrid cars in the United States as early as 2010.