On the 14th, Samsung SDI held a board meeting and announced that it had resolved to increase its funds for facility investment through a paid-in capital increase of 2 trillion won. The number of shares for this paid-in capital increase, which will be conducted through a method of shareholder allocation followed by a general public offering for unsubscribed shares, is 11,821,000 shares, with an increase rate of 16.8%.
The allocation of new shares will be based on April 18, and the definitive issue price will be determined on May 22. The subscription process will take place from May 27 to June 3 in the order of employee stock ownership association, existing shareholders, and general public offering, with the listing of new shares expected to be completed on June 19.
Samsung SDI plans to use the funds raised from this paid-in capital increase for investments in a joint venture with General Motors (GM) in the United States, expanding production capacity at its factory in Hungary, and facility investments for domestic all-solid-state battery lines. The company noted, "The decision to increase capital was made considering the mid-to-long-term growth outlook for the electric vehicle battery market, as well as the characteristics of the battery business, which takes 2 to 3 years from facility investment to mass production."
To secure mid-to-long term growth momentum, Samsung SDI plans to actively pursue not only already confirmed investments such as joint ventures with Stellantis and GM in the U.S., but also facility investments in Hungary, as well as the development and mass production investment of new technologies like all-solid-state and lithium iron phosphate (LFP) batteries.
The scale of Samsung SDI's facility investment has increased nearly fourfold, from about 1.7 trillion won in 2019 to 6.6 trillion won in 2024. This year, while a temporary demand contraction is expected to slightly reduce the scale of facility investment compared to the previous year through investment efficiency improvements, the policy remains to continue investments to secure future technology and production capacity.
CEO Choi Joo-sun of Samsung SDI stated, "We decided to increase our capital to accelerate mid-to-long term growth based on a stable financial structure," adding, "We will overcome the chasm through strengthening technological competitiveness, expanding sales and orders, and innovating expenses, and will diligently prepare for the upcoming super cycle."