The company’s bold investment plan comes against the lingering concerns about a global battery supply glut amid a protracted EV slump across the world, underscoring its confidence in the EV battery industry’s long-term growth prospects.“We have decided to issue new shares to drive our mid to long-term growth with sound financial health,” said Choi Joo-sun, the president and Chief Executive Officer of Samsung SDI.“We are readying for the return of a (so-called) supercycle (of the battery industry) by fighting back the EV chasm with reinforced competitiveness in technology, expansion of orders and sales and efficient cost management,” he added.
Its annual spending on R&D also hit the highest of 1.3 trillion last year among the Korean top three battery makers – LG Energy Solution Ltd., Samsung SDI and SK On Co.The world’s No.5 EV battery maker is actively investing in the development of next-generation battery technologies, such as solid-state batteries and lithium-ion phosphate (LFP) batteries, to stay ahead of its rivals.
The world's fifth-largest EV battery market will use the proceeds from the new share sale to expand manufacturing facilities and new technology research – about 500 billion won in building pilot lines to produce precursors in Korea and the remaining 1.5 trillion won in building its manufacturing joint venture with General Motors Co.in the US and adding new battery cell lines in Hungary.
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