Battery makers raise cash to fund U.S. investments in Trump's 'America First' era
Published: 14 Mar. 2025, 16:22
Updated: 14 Mar. 2025, 16:23
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- SARAH CHEA
- [email protected]
Audio report: written by reporters, read by AI
![Samsung SDI CEO Choi Joo-sun speaks at InterBattery 2025 at Coex, southern Seoul, on March 5. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/03/14/b7803190-7f02-4981-aad1-759a05026638.jpg)
Samsung SDI CEO Choi Joo-sun speaks at InterBattery 2025 at Coex, southern Seoul, on March 5. [NEWS1]
Korean battery makers are rushing to fill their coffers to forge ahead with planned investments overseas amid U.S. President Donald Trump's flip-flopping tariff tussle aimed at prioritizing U.S. manufacturing.
Samsung SDI said on Friday that it will raise up to 2 trillion won ($1.4 billion) via a rights offering mainly to fund its $3.5 billion planned joint battery plant with General Motors in Indiana.
![Samsung SDI's battery manufacturing unit in Hungary [SAMSUNG SDI]](https://koreajoongangdaily.joins.com/data/photo/2025/03/14/63201d1d-0858-40b1-86c2-c79713c447b4.jpg)
Samsung SDI's battery manufacturing unit in Hungary [SAMSUNG SDI]
Some 1.54 trillion won will be utilized to expand its overseas capacity, which includes doubling its capacity in its Hungary plant for orders from BMW and Audi.
The company will issue roughly 11.82 million common shares at a price of 169,200 won per share. Subscriptions will take place through June 3, and the newly issued shares will be listed on June 19.
Roughly 450 billion will be poured into its solid-state battery plant production line, where the company eyes mass production in 2027. The company has already produced sample products and delivered them to clients, with feedback coming in.
Samsung SDI cited "preparations for the upcoming supercycle" as the reason behind the surprising capital-raising plan, adding that this year's battery market will grow 20 percent driven by sales in the United States and Europe.
"We decided to go forward with a rights issuance to accelerate our mid- to long-term growth with a stable financial structure," said Samsung SDI CEO Choi Joo-sun Choi. "We will overcome the current market slowdown by strengthening our technological competitiveness, expanding sales and orders and innovating the cost structure."
![LG Energy Solution CEO Kim Dong-myung speaks at InterBattery 2025 exhibition in Coex, southern Seoul, on March 5. [LG ENERGY SOLUTION]](https://koreajoongangdaily.joins.com/data/photo/2025/03/14/9f3abae6-ff02-44e6-9000-555aa3a4a1a1.jpg)
LG Energy Solution CEO Kim Dong-myung speaks at InterBattery 2025 exhibition in Coex, southern Seoul, on March 5. [LG ENERGY SOLUTION]
It also comes as part of efforts to scale up U.S. capacity, with Trump's "America First" policy emphasizing further investment and local production in the United States.
"Batteries are certainly a promising segment, and Korean companies must not halt their investments for future growth," said researcher Hwang Kyung-in from the Korea Institute for Industrial Economics & Trade.
"Market share expansion in the United States is essential to overcome current temporary slowdown," He added, pointing to the government's role in providing support.
LG Energy Solution, Korea's largest battery maker, also said it is issuing corporate bonds worth 800 billion won to finance its expenditures for multiple battery plants in North America. The battery firm is currently constructing five factories on the continent, including a $7.6 billion joint plant with Hyundai Motor in Georgia and a $4.4 billion facility with Honda in Ohio.
"We have many plants in the United States, and I believe our advanced entry will be effective [in the current tariff situation]," said LG Energy Solution CEO Kim Dong-myung at the InterBattery 2025 trade show on March 5.
"The battery market will likely rebound in the second quarter, and we should be well-prepared for the future when the demand bounces back."
BY SARAH CHEA [[email protected]]
with the Korea JoongAng Daily
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