Latest news with #ChoiJoo-sun
![[Exclusive] Samsung SDI revamps sales under CEO amid push for global orders](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F08%2F17%2Fnews-p.v1.20250817.3f0109e83f4a413c86fa0e3f2e7cd54b_T1.jpg&w=3840&q=100)
![[Exclusive] Samsung SDI revamps sales under CEO amid push for global orders](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75){kind=small}
Korea Herald
2 days ago
- Automotive
- Korea Herald
[Exclusive] Samsung SDI revamps sales under CEO amid push for global orders
Move consolidates customer order management, strengthens push for package deals with global automakers Samsung SDI has recently merged its sales teams into a single unit directly overseen by CEO Choi Joo-sun, in an apparent bid to ramp up battery orders across applications ranging from electric vehicles to energy storage systems. According to industry sources on Sunday, the battery maker affiliated with Samsung Electronics restructured its strategy marketing office earlier this month as part of a broader organizational reshuffle. Previously, the company's sales teams operated under separate battery and materials business divisions. Now, they have been consolidated into a unified strategy marketing office that reports directly to the CEO. 'The elevated status demonstrates the company's strong commitment to driving sales and securing overseas orders,' said an industry source familiar with the matter, who requested anonymity. Another source confirmed the change, saying, 'This is a strategic move to consolidate all customer order management functions into a single organization.' Until 2021, Samsung SDI operated the strategy marketing office as an independent division, before splitting it into three business units: one for small batteries, such as cylindrical and pouch lithium-ion cells used in electronic devices and two-wheelers; another for medium- and large-sized prismatic and cylindrical batteries for EVs and ESS; and a third for electronic materials. Even within each unit, marketing activities were reportedly managed separately by application and form factor. 'This shift allows for more streamlined and efficient supply agreements, such as 'package deals' with global OEMs like General Motors and Tesla, which have been seeking multiple battery form factors and applications,' the source added. The restructuring also signals that Samsung SDI is adopting a more aggressive approach to securing corporate orders compared to rivals LG Energy Solution and SK On, which continue to operate separate sales teams under each business division. Samsung SDI's renewed push comes after two consecutive quarterly operating losses, largely due to weak demand for EV batteries from OEMs and reduced profitability in the US ESS market, partly tied to tariffs on automobiles and related components. During its second-quarter earnings call, the company vowed to step up efforts to win global battery orders. 'We have secured orders for cylindrical batteries measuring 46 millimeters in diameter for premium EVs from a leading European global OEM, and we are currently negotiating supply contracts for commercial EVs with a North American startup,' said Kim Jong-sung, executive vice president of Samsung SDI's business management office. He added that the company is also in talks with another major European automaker regarding entry-level EV lithium iron phosphate prismatic batteries, as well as nickel, cobalt and aluminum prismatic cells for commercial vehicles. According to Kim Soo-hwan, head of the mid-to-large battery division, Samsung SDI has so far pursued a premium EV battery strategy but now intends to target the entry-level market as well, reflecting rapid growth in the budget EV segment. In the ESS sector, Samsung SDI plans to convert part of its first joint venture battery cell plant with Stellantis from EV to ESS production. With mass production scheduled to begin in the fourth quarter of this year, Kim emphasized that the company has already secured orders for the line through next year.
Korea Herald
01-07-2025
- Automotive
- Korea Herald
Samsung SDI marks 55 years, as CEO vows to tackle EV woes
Samsung SDI celebrated its 55th anniversary on Tuesday, reaffirming its commitment to spurring growth amid the ongoing challenges in the global electric vehicle market. Samsung SDI CEO Choi Joo-sun attended a celebratory event earlier in the morning, marking his first time participating since he took office last year. The event was also attended by key executives and recipients of the SDI Award for outstanding achievements, along with awardees who have been recognized for their extended tenure. In his commemorative speech, Choi said, 'We can show our true skills during dark times.' Speaking with confidence, he expressed, 'If we believe in our potential and join forces, we can soon make a significant leap forward.' Addressing the turbulent business environment and candidly sharing the weight of leadership in difficult times, he added, 'Many nights, I struggle to sleep. The realities we face at times send chills down my spine.' However, Choi encouraged the attendees by highlighting the importance of developing differentiated technology, rebuilding manufacturing competitiveness, normalizing battery electrodes, assembly and pack technologies and ensuring the success of the new electronic materials business. 'We can and we will succeed,' said Choi, pledging to 'lead the way and make every effort to create the promising future you envision. I will take responsibility.'
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
