Seoul, March 15 Samsung SDI Co., South Korea's second-biggest battery maker, said it will raise 2 trillion won ($1.37 billion) through a stock sale as part of its broader growth strategy.
Its board of directors approved the capital increase aimed at "preemptively" securing a capital to prepare for a rebound in the car battery market, the company said in a press release.
Samsung SDI said it will issue some 11.82 million common shares at 169,200 won per share, with the final stock price set to be decided on May 22, reports Yonhap news agency.
The newly issued shares will be initially sold to the firm's existing shareholders, with their listing scheduled for June 19 after subscription rounds from May 27 to June 3, the company said.
Samsung SDI plans to utilise the proceeds from the rights issue to invest in a joint venture with General Motors Co. in the United States, expand output capacity at its plant in Hungary and invest in facilities for its solid-state battery line in Korea.
Furthermore, the company will review various financing options, including utilizing its existing assets, to overcome the electric vehicle (EV) "chasm," which occurs before the widespread adoption of EVs.
Samsung SDI's facility investments jumped to 6.6 trillion won last year from 1.7 trillion won in 2019 despite the EV chasm.
Global market research firms expect an average of 20 percent growth each year in the car battery market during the 2025-2030 period, the release said.
Meanwhile, Samsung SDI signed an initial pact with Hyundai Motor and its affiliate Kia to jointly develop robot-specific batteries.
Samsung SDI has signed a memorandum of understanding (MOU) with the two carmakers to develop high-performance batteries specifically for robots, with an aim to significantly increase energy density, output and usage time, the company said.
"Through this collaboration, we will introduce differentiated technologies and high-quality products in the robot battery market," Samsung SDI Executive Vice President Cho Han-jae said.
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