Samsung SDI said on March 14 it will raise 2 trillion won ($1.5 billion) through an equity offering to fund its expansion in electric vehicle (EV) battery production, positioning itself for long-term growth despite a temporary slowdown in demand.
The company’s board approved a public offering of 11.82 million new shares, representing 16.8% of its outstanding stock, according to a regulatory filing.
Samsung SDI plans to allocate the proceeds toward its joint venture with General Motors in the United States, expanding capacity at its Hungary plant, and developing solid-state battery technology in South Korea.
“The battery business requires two to three years from facility investment to mass production,” the company said in a statement.
The global EV market has faced a slowdown, weighing on battery demand. However, research firms project the sector will expand at an average annual rate of 20% between 2025 and 2030, reinforcing expectations of sustained adoption.
Samsung SDI’s capital expenditures have nearly quadrupled from 1.7 trillion won in 2019 to 6.6 trillion won in 2024. “This equity offering is a proactive move to secure funding for long-term investment and maintain financial stability ahead of a demand recovery,” a company spokesperson said.
The new shares will be allocated to shareholders as of April 18, with final pricing set for May 22. Subscriptions will be accepted from May 27 to June 3, and the listing of new shares is scheduled for June 19.
Samsung SDI also said it is considering additional financing options, including asset sales, to secure further investment capital.
“We will strengthen our technological competitiveness, expand orders and revenue, and drive cost innovation to navigate current market challenges and prepare for the upcoming super cycle,” President and CEO Choi Joo-sun said.
