Latest news with #ChoiJoo-sun
Korea Herald
19-03-2025
- Business
- Korea Herald
Samsung SDI's capital increase under review
Samsung SDI faced shareholder backlash following a drop in stock price after raising 2 trillion won ($1.4 billion) through a paid-in capital increase to fund battery facility investments. During a shareholders' meeting, concerns were raised about why the company opted for a capital increase rather than issuing corporate bonds, which could have protected existing shareholders from dilution. A capital increase involves issuing new shares to raise funds without incurring interest burdens, unlike bank loans or bonds, but it often negatively impacts stock prices by diluting existing shareholders' equity. Earlier in the day, reports emerged that the Financial Supervisory Service had selected Samsung SDI as the first company to undergo its newly introduced review system for paid-in capital increases. Samsung SDI CEO Choi Joo-sun addressed the situation, saying, "We will thoroughly explain the purpose of the capital increase to the authorities," during a meeting with reporters in Gangnam, Seoul, on Wednesday. He added that he only learned of the FSS review through media reports. Later in the day, FSS Governor Lee Bok-hyun commented during a press briefing, stating, "Samsung SDI's capital increase is a positive investment. …We will ensure that investors are well-informed about the capital increase and expedite the review process so the company can secure funding swiftly." Samsung SDI CFO Kim Jong-sung explained the rationale behind the capital increase, stating, "Our financial structure has weakened due to significant capital expenditures and proactive R&D investments aimed at mid-to-long-term growth." He emphasized the need to strengthen financial stability to navigate external and internal volatility. Kim further noted that the company's borrowings have increased by over 5 trillion won in the past year and are expected to rise further in 2025 and 2026. He added, "With interest rates rising, securing funding has become increasingly challenging. This is why we prioritized the capital increase." He also mentioned that Samsung Electronics, Samsung SDI's largest shareholder, may participate in the capital increase, while the company explores alternative funding options such as issuing corporate bonds or leveraging other assets. The funds raised will be allocated to investments in the US joint venture with General Motors, the Hungarian plant, and next-generation technologies, including all-solid-state batteries. When asked about the potential repeal of the US Inflation Reduction Act (IRA) under a second Donald Trump administration, Choi responded, "The three major battery companies — LG Energy Solution, Samsung SDI, and SK On — are working with the Korea Battery Industry Association and we have dispatched representatives to Washington to address the issue."
Korea Herald
14-03-2025
- Automotive
- Korea Herald
Samsung SDI to raise W2tr through rights offering
Battery maker looks to continue investing amid slowing EV transition Samsung SDI said Friday that it will attempt to raise 2 trillion won ($1.37 billion) through a rights offering, as the Korean battery maker invests in its mid- to long-term growth amid a stalling electric vehicle market. According to Samsung SDI, its board of directors decided to conduct the rights offering to secure funds for facility investments. The company will issue 11,821,000 new shares, which is a 16.8 percent increase from the current amount of shares. The new share allocation date is slated for April 18, while the final issuing price will be determined on May 22. The subscription process will be held from May 27 to June 3 in the order of the employee stock ownership association, existing shareholders and the public. The new shares are expected to be listed June 19. Samsung SDI plans to use the additional funds raised through the rights offering to invest in the joint venture with General Motors in the United States, expand the capacity of its battery plant in Hungary and set up all-solid-state battery lines in Korea. The battery maker explained that the decision to carry out the rights offering was made considering the battery industry's nature, which takes about two to three years from facility investments to mass production as well as the future growth outlook for the EV battery market. Samsung SDI pointed out that global original equipment manufacturers, or auto brands, are maintaining their mid- to long-term EV transition plan despite the concerns over weakening demand for EVs and slowing growth. The battery maker added that market analyzers forecast the EV battery market will undergo high growth with a compound annual growth rate of about 20 percent between 2025 and 2030. Samsung SDI's facility investment hit 6.6 trillion won in 2024, up approximately fourfold from 2019. Although this year's facility investment will be slightly less due to a temporary shrink in demand, the company said it will continue to invest in securing future technologies and production capacity. "We decided to go forward with a rights issue to accelerate our mid- to long-term growth with a stable financial structure," said Choi Joo-sun, CEO of Samsung SDI. "We will overcome the current market slowdown by strengthening our technological competitiveness, expanding sales and orders and innovating the cost structure, and prepare for the upcoming supercycle."
Yahoo
06-03-2025
- Automotive
- Yahoo
Samsung SDI CEO says EV demand to remain sluggish until H1 of 2026
SEOUL (Reuters) - The chief executive of South Korean battery maker Samsung SDI said on Wednesday demand for electric vehicles will remain sluggish until the first half of next year. CEO Choi Joo-sun also told reporters at a major battery expo that the company's earnings will likely bottom out in the first quarter of this year and begin a gradual recovery starting in the second quarter. Samsung SDI reported an operating loss of 257 billion won ($176.54 million) in the fourth quarter of 2024. Rival battery firm LG Energy Solution (LGES) CEO Kim Dong-myung said its earnings will begin gradually improving in the second half of the year. The supplier to Tesla reported an operating loss of 226 billion won ($158 million) for the October-December period compared to a profit of 338 billion won in the same period a year ago. ($1 = 1,455.8000 won) Sign in to access your portfolio
Korea Herald
05-03-2025
- Automotive
- Korea Herald
Samsung SDI ready to roll out 46-series batteries: CEO
Samsung SDI President and CEO Choi Joo-sun said Wednesday the company is poised to start mass production of its new 46-series cylindrical batteries for electric vehicles, an upgraded version of the smaller 21700 batteries. 'We have secured customers for these batteries and have submitted sample products (to them),' said Choi during a press briefing at the InterBattery 2025 exhibition on Wednesday in Gangnam, Seoul, while declining to disclose specifics, citing confidentiality. The 46-series cylindrical battery, measuring 46 millimeters in diameter, is called a 'game changer' for its enhanced energy capacity and output and an emerging form factor selected by carmakers looking to power their high-performance electric vehicles. Samsung SDI has displayed the new lineup with four variants: 4680, 4695, 46100 and 46120 — all sharing a 46 mm diameter but differing in length (80 mm, 95 mm, 100 mm and 120 mm, respectively) in its exhibition but, while its rival LG Energy Solution also showcased the advanced tech. Regarding the company's US operations, Choi said, 'This year, we are taking a rather conservative approach on (whether to build) our own North American plant due to a notable decline in the (EV) demand compared to last year. Nonetheless, we are assessing our options, as long-term growth remains a top priority.' Choi added that the first battery cell manufacturing plant of NextStar Energy in the US, a joint venture with Stellantis, has ramped up production faster than expected, with the US Advanced Manufacturing Production Credit projected to be reflected in the first quarter of this year. While taking a cautious approach to completing the second plant of NextStar Energy and a joint venture facility with General Motors by 2027 and 2026, respectively, due to a downturn in the EV demand, Choi noted the company is considering meeting the construction deadline for now. When asked whether Samsung SDI plans to lower the operation rate of its Hungarian plant following Trump's proposed 25 percent tariffs on EU goods, Choi said, 'Our Hungarian facility is currently operating at much lower rates driven by a significant decline in customer demand compared to the past. Unfortunately, I cannot share specific figures (on the rate) due to confidentiality.' Choi projected that the company is expected to see a turnaround from the second quarter of next year while pledging to advance its technological prowess through investments even in the face of ongoing trade disruptions. Commenting on the recent business tie-up with Hyundai Motor Group on robotics, Choi hinted at bolstering a partnership with the auto giant on electric vehicles as well.
Reuters
05-03-2025
- Automotive
- Reuters
Samsung SDI CEO says EV demand to remain sluggish until H1 of 2026
SEOUL, March 5 (Reuters) - The chief executive of South Korean battery maker Samsung SDI ( opens new tab said on Wednesday demand for electric vehicles will remain sluggish until the first half of next year. CEO Choi Joo-sun also told reporters at a major battery expo that the company's earnings will likely bottom out in the first quarter of this year and begin a gradual recovery starting in the second quarter. Samsung SDI reported an operating loss of 257 billion won ($176.54 million) in the fourth quarter of 2024. Rival battery firm LG Energy Solution (LGES) ( opens new tab CEO Kim Dong-myung said its earnings will begin gradually improving in the second half of the year. The supplier to Tesla (TSLA.O), opens new tab reported an operating loss of 226 billion won ($158 million) for the October-December period compared to a profit of 338 billion won in the same period a year ago. ($1 = 1,455.8000 won) Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.
