South Korean electric vehicle (EV) battery manufacturer Samsung SDI Company announced it plans to raise KRW2trn (US$1.38bn) in fresh funds through a rights issue, to help it fund global expansion and introduce new technologies.
The company confirmed that its board of directors this week approved a plan to issue 11.82 million new common shares, representing a 17% increase on the existing shares issued, which it plans to list on the South Korean stock exchange on the 19th June. The shares are expected to be priced at around KRW169,200, representing a 12% discount on the current share price. Existing shareholders will be allowed to invest in the new shares through subscription rounds to be held in the next few months.
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Samsung SDI said it plans to use the new funds to invest in its joint venture with General Motors in the US, expand capacity at its battery plant in Hungary and build lines for all solid-state batteries in South Korea.
The company suggested that global vehicle manufacturers remain committed to their electrification strategies in the medium and long term, despite slowing EV demand growth in the short term. The company also pointed to market research which suggests that the global battery market will grow by an average of 20% per year between 2025 and 2030.
Samsung SDI’s annual capital expenditure has risen almost fourfold in the last five years, from KRW 1.7trn in 2019 to KRW6.6trn in 2024. The company said this figure is expected to decline slightly this year as it adjusts its investment plans to take into account the temporary slowdown in demand growth. But it confirmed it remains committed to continuing investments for future technologies and production capabilities.
Samsung SDi’s CEO Joo Sun Choi said in a statement: “We decided to go forward with a rights issue to accelerate our mid- to long-term growth with a stable financial structure. We will overcome the current market slowdown by strengthening our technological competitiveness, expanding sales and orders and innovating the cost structure, and prepare for the upcoming supercycle.”
