On March 14, 2025, Samsung SDI officially announced its decision to conduct a 2 trillion won rights offering aimed at bolstering its investment capabilities and ensuring long-term growth. This strategic move reflects the company’s ambition to strengthen its footing within the rapidly growing electric vehicle (EV) battery sector.
During the board meeting held on the same day, company executives disclosed plans to issue 11,821,000 new shares, representing a significant 16.8% increase. Following the shareholder allocation, the rights offering will proceed through general public subscription, with the ex-rights date set for April 18, 2025. The final issue price is scheduled to be determined by May 22, 2025, and the subscription period will run from May 27 to June 3, 2025. Investors can expect the new shares to be listed formally on June 19, 2025.
Choi Joo-seon, CEO of Samsung SDI, emphasized the importance of this rights offering, stating, "We decided on the rights offering to accelerate mid- to long-term growth based on our stable financial structure." This aligns with the company's focus on enhancing technological competitiveness and preparing for anticipated market demands.
The funds raised from the offering are earmarked for various investment opportunities, including the establishment of a joint venture with General Motors (GM) to meet the increasing EV battery demands. Additional investments are planned to expand the Hungarian manufacturing plant’s production capacity and to develop solid-state battery lines within South Korea.
Samsung SDI's facility investments have shown remarkable growth over the years, with expenditures rising from approximately 1.07 trillion won in 2019 to around 6.6 trillion won by 2024—an almost fourfold increase. Although the company anticipates a slight decrease in investment this year due to temporary market fluctuations, it remains committed to leveraging its investments for future technological advancements and production capacity enhancements.
Samsung SDI is aware of the challenges posed by current EV market conditions. Despite the recent moderation of growth rates, major global OEMs maintain their long-term electrification strategies, contributing to expectations of sustained demand for EV batteries. Market analysts suggest the industry could experience average annual growth rates of about 20% from 2025 to 2030.
By pursuing this rights offering, Samsung SDI aims to proactively secure the necessary resources for long-term investment. The plan not only provides for future demand recovery but also seeks to strengthen the company’s market leadership when such demand returns.
"We have already committed to investments alongside major players like GM and Stellantis and will continue to advance initiatives aimed at developing and producing new technologies, including solid-state and lithium iron phosphate (LFP) batteries," Choi added.
Alongside this, Samsung SDI is actively exploring diverse funding strategies, including utilizing its existing assets to bolster its capital base.
This comprehensive approach is indicative of Samsung SDI's determination to fortify its position within the competitive EV battery market. The company's proactive measures reflect its anticipation of entering what they describe as the upcoming 'supercycle' for battery demand.
This proposed rights offering is not just about raising funds; it signifies Samsung SDI's forward-thinking strategies and commitment to leveraging technological innovation to maintain its competitive edge. The company’s long-standing investment trend indicates its resolve to capture market share as recovery begins and to be well-prepared to meet rising EV battery requirements.
The path forward for Samsung SDI looks promising, as the company aligns its operational strategy with the demands of the electric vehicle revolution.