SAMSUNG SDI has announced a rights offering to raise approximately KRW 2 trillion ($1.38 billion) aimed at enhancing its future competitiveness and supporting mid- to long-term growth initiatives. The Board of Directors approved the rights to secure necessary funds for new facility investments.
The rights offering involves the issuance of 11,821,000 new shares, representing a 16.8% increase in total shares. Unsubscribed shares from the offering will be made available for public subscription. The record date for allocation of the new shares is set for April 18, with the final issue price to be determined on May 22. The subscription period will run from May 27 to June 3, beginning with the employee stock ownership association and existing shareholders before opening to the general public. The newly issued shares are expected to be listed on June 19.
The capital raised through this rights offering will be allocated towards SAMSUNG SDI’s joint venture with General Motors in the United States, the expansion of its battery production facilities in Hungary, and the development of production lines for all solid-state batteries in Korea. These investments are part of the company’s strategy to maintain a stable financial structure and support its leadership position in the market as demand recovers.
SAMSUNG SDI CEO Joo Sun Choi emphasized the company’s commitment to achieving a stable financial foundation, overcoming the current market slowdown, and preparing for an anticipated supercycle in the battery industry. He highlighted the importance of strengthening technological competitiveness, expanding sales and orders, innovating the cost structure, and continuing investment in future technologies and production capabilities.
The decision to proceed with the rights offering takes into account the typical two to three-year timeline required for new facility investments to reach mass production. This aligns with the positive outlook for the battery market, which market researchers predict will grow by an average of 20 percent annually from 2025 to 2030. Despite concerns about potential lower demand due to a slowing electric vehicle market, OEMs remain committed to their long-term electrification strategies.
Since 2019, SAMSUNG SDI’s annual capital expenditures have increased significantly from KRW 1.7 trillion to KRW 6.6 trillion in 2024. Although there will be a slight reduction in capital expenditures this year due to adjusted investment plans in response to temporarily reduced demand, the company remains dedicated to investing in future technologies and expanding production capabilities.
SAMSUNG SDI is also exploring various measures to secure additional funds from its assets to support long-term investments and ensure a stable financial structure for enhanced market leadership as demand recovers.
Source: SAMSUNG SDI
