Daijiworld Media Network - Seoul

Seoul, Mar 15: Samsung SDI, South Korea’s second-largest battery manufacturer, has announced plans to raise 2 trillion won ($1.37 billion) through a stock sale as part of its long-term growth strategy.

The company’s board approved the capital increase to secure funds in anticipation of a rebound in the electric vehicle (EV) battery market, Samsung SDI stated in a press release.

Approximately 11.82 million common shares will be issued at 169,200 won per share, with the final price set to be determined on May 22. The newly issued shares will first be offered to existing shareholders, with listing scheduled for June 19 after subscription rounds from May 27 to June 3.

Samsung SDI plans to use the funds to invest in its joint venture with General Motors in the US, expand its production facility in Hungary, and develop solid-state battery technology in Korea.

The company also stated that it will explore additional financing options, including leveraging existing assets, to navigate the current slowdown in EV adoption, often referred to as the “EV chasm.” Despite this market challenge, Samsung SDI increased its facility investments to 6.6 trillion won in 2023, up from 1.7 trillion won in 2019.

Industry forecasts predict an average annual growth of 20% in the EV battery market between 2025 and 2030, reinforcing Samsung SDI’s aggressive investment approach.

Additionally, the company has signed an initial agreement with Hyundai Motor and Kia to jointly develop high-performance batteries for robotic applications.

“Through this collaboration, we will introduce differentiated technologies and high-quality products in the robot battery market,” said Samsung SDI executive vice president Cho Han-jae.