South Korean battery manufacturer Samsung SDI has announced a major rights offering to secure KRW 2 trillion ($1.38 billion) in funding for a series of key strategic investments. Among the investments targeted is the company’s joint venture with GM, as well as expansion of the company’s production facilities and new battery technology development. Shareholders will have the opportunity to participate based on a record date of April 18th.
In total, the company plans to issue 11.8 million new shares, increasing its total outstanding shares by 16.8 percent. The final share price will be determined on May 22nd, with the subscription period running between May 27th and June 3rd. Any remaining shares will be made available to the public, with new shares expected to be listed on June 19th.
Samsung SDI has outlined three primary areas where the newly raised capital will be allocated, with a significant portion of the funds directed toward Samsung SDI’s joint battery production with GM in the U.S. Back in August, GM and Samsung finalized a deal to build a new EV battery plant in Indiana. Samsung also aims to ramp up production at its Hungarian manufacturing site to meet rising demand from automakers, as well as invest in next-generation battery technology, with plans to establish new production lines in South Korea for all-solid-state-batteries (ASSB).
Samsung SDI states that although global demand for EVs has slowed in recent months, the company remains optimistic about the industry’s future. Samsung points to market analysts who project that the battery sector will grow by 20 percent annually between 2025 to 2030 as automakers continue their respective electrification efforts.
Samsung SDI has significantly increased its capital expenditures in recent years, growing from KRW 1.7 trillion in 2019 to KRW 6.6 trillion in 2024.
Earlier this year, GM Authority reported that General Motors had filed a patent for a new mixed chemistry EV battery pack that combines nickel-manganese-cobalt (NMC) with lithium-iron-phosphate (LFP), potentially creating a battery type that offers the advantages of both respective chemistries.
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