Warren Buffett-backed electric carmaker BYD Co. is considering an initial public offering for its unit that makes a power-management device, Bloomberg reported citing people familiar with the matter.

The listing would involve a business that produces insulated gate bipolar transistor (IGBT) switches that reduce power loss and improve reliability in electric cars, the news outlet said. The listing may be on the Chinese mainland, though no final decisions on the timing or location have been made, Bloomberg reported.

Production of IGBTs is limited worldwide, according to Bloomberg. Only a handful of technology companies including Infineon Technologies AG and Mitsubishi Electric Corp. have the know-how to make IGBTs. BYD is the sole Chinese automaker that produces them independently.

The market for IGBTs is expected to almost double to $8.55 billion between 2019 and 2024, driven by Asia and demand for electric and hybrid vehicles, according to forecasts by Mordor Intelligence.

Contact reporter Han Wei (weihan@caixin.com)