South Korean battery manufacturer Samsung SDI Company announced that it plans to sell down its stake in Samsung Display Company, an affiliated manufacturer of digital displays for the automotive and other end-user sectors, as it looks to free up capital for investment in future growth businesses.

In a regulatory filing, the company confirmed that it has agreed to reduce its stake in Samsung Display from 15.2% to 10.2%, by selling 13.09 million shares each priced at KRW 304,000, freeing up a total of KRW 4.45 trillion (US$ 3.2 billion) in new investment capital. Samsung Display said it would buy back the shares from Samsung SDI as treasury stock, with the final valuation subject to change during the repurchasing process.

Samsung SDI has faced rising investment demand in the US, reflecting falling sales of battery electric vehicles (BEVs) in the country following policy changes by the US government, including the withdrawal of BEV purchase incentives worth up to US$ 7,500 per vehicle last year.

This has prompted manufacturers such as Samsung SDI, LG Energy Solution and SK On to convert some of their newly-built capacity in North America from automotive batteries to energy storage systems (ESS), while also buying out their vehicle manufacturing joint venture partners for some of this capacity.

Samsung SDI recently agreed to take over General Motors’ almost 50% stake in its Synergy Cells joint venture, which was established in 2024, giving the South Korean battery maker full control of the US$ 3.5 billion battery plant under construction in New Carlisle, Indiana.