Samsung SDI Launches 2 Trillion KRW Stock Issuance to Accelerate Global Battery Production

Recently, Samsung SDI, the South Korean battery manufacturer, announced a significant stock issuance plan aimed at raising approximately 2 trillion KRW (around $13.8 billion) to enhance its global battery production capabilities. The funds raised will primarily focus on three key areas: investing in a joint factory with General Motors in the U.S., expanding the capacity of its battery plant in Hungary, and advancing the construction of a solid-state battery production line in South Korea.

The stock issuance will be open to existing shareholders, with any unsubscribed shares made available to the public. The company plans to issue 11,821,000 new shares, accounting for 16.8% of its total share capital. The final issuance price is set to be determined on May 22, with the new shares expected to begin trading on June 19. Samsung SDI emphasized that transitioning from new facility investments to large-scale production typically takes two to three years. Despite a short-term slowdown in electric vehicle market growth possibly affecting battery demand, global automotive manufacturers remain committed to their electrification strategies.

Market research firms predict that the global battery market will maintain an annual growth rate of 20% from 2025 to 2030. In line with this trend, Samsung SDI plans to invest further in the development and mass production of new technologies, including solid-state batteries and lithium iron phosphate (LFP) batteries.

Samsung SDI's annual capital expenditure has surged from 1.7 trillion KRW in 2019 to 6.6 trillion KRW by 2024, nearly quadrupling. The company expects to achieve a revenue of 16.59 trillion KRW (approximately $115.5 billion) for the full year of 2024, with an operating profit of 363.3 billion KRW. In the fourth quarter, sales reached 3.75 trillion KRW, with the ESS battery segment hitting a historic high.

In terms of solid-state battery advancements, Samsung SDI's proprietary All-Solid-State Battery (ASB) boasts an energy density of 900Wh/L, representing a 40% improvement over current high-performance cylindrical batteries (P5).

In March 2022, the company began constructing a solid-state battery pilot line in Suwon and established a commercialization team for ASB in December 2023. By 2024, Samsung SDI had delivered solid-state battery samples to multiple clients and is currently conducting a six-month testing phase. The company aims to achieve mass production of solid-state batteries by 2027, with a detailed roadmap already in place.

Additionally, Samsung SDI has expanded the supply of solid-state battery samples to five clients and is actively working on R&D, including the internalization of critical battery materials. On February 25, Samsung SDI announced a preliminary agreement with Hyundai Motor and its subsidiary Kia to jointly develop high-performance batteries specifically designed for robotics. Under this agreement, Samsung SDI will focus on enhancing high-capacity materials to improve energy density, while Hyundai and Kia will evaluate the performance of these new batteries in robotic applications.