Korea's Samsung SDI to raise funds for battery growth

Market: Battery materials, Metals
14/03/25

South Korean battery maker Samsung SDI is looking to raise 2 trillion Korean won ($1.38bn) to fuel its battery production developments, citing a Hungary plant expansion and its joint venture investment with US carmaker General Motors (GM).

The capital raise is based on the mid- to long-term growth prospects of the electric vehicle battery market, given that battery facility investments take 2-3 years to reach mass production, said the firm on 14 March.

Samsung SDI previously flagged that it intends to expand its plant in Hungary's God to 40 GWh/yr. The firm in August 2024 signed an agreement with GM to build a two-phase nickel-cobalt-aluminum battery plant that is expected to have a final production capacity of 36 GWh/yr in New Carlisle, Indiana. The joint venture investment will take around $3.5bn.

The proceeds will also be used to invest in solid-state battery line facilities in South Korea, said Samsung SDI. The firm launched its first all solid-state battery pilot line back in March 2022 and aims to mass produce solid-state batteries in 2027, which are more stable and have high energy density, it said last year.

Its facility investment has quadrupled from W1.7 trillion in 2019 to W6.6 trillion last year, but Samsung SDI expects this to shrink this year, citing "investment efficiency".

Samsung SDI's battery usage fell by almost 11pc to 29.6GWh in 2024, according to data from South Korean market intelligence firm SNE Research, given a decline in demand from major car original equipment manufacturers in Europe and North America.

By Joseph Ho

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