Samsung SDI has completed its capital increase, and POSCO FUTURE M is set to launch its own capital increase. After successfully raising 1.65 trillion won, Samsung SDI will commence expansion and renovation work at its factory in Hungary. POSCO FUTURE M plans to finish its capital increase in July to invest in a joint venture with General Motors (GM) and secure a domestic production base for anode materials.
According to the battery industry on the 28th, Samsung SDI sold all 11,821,000 shares it planned to issue in a subscription for a capital increase that took place from the 21st to the 22nd with its employee stock ownership association and existing shareholders. The actual number of subscription shares reached 12,052,922, yielding a subscription rate of 102%. In the general public offering held from the 26th to the 28th, subscriptions for a total of 40,736 fractional shares (less than 1 share) were made. The newly raised funds from the capital increase will be injected on the 30th of this month.
Samsung SDI will use a substantial portion of the funds raised from the capital increase for the expansion of its factory in Göd, Hungary. Previously, Samsung SDI announced that it would use the funds secured from the capital increase for the renovation of its first factory and the expansion of its second factory in Hungary. Samsung SDI plans to invest 396.1 billion won by 2026 to expand the production capacity of prismatic batteries at its Hungarian factory and establish a lithium iron phosphate (LFP) battery line. It will also invest 354.1 billion won by 2026 for its domestic all-solid-state battery line and 904.7 billion won into a battery joint venture with GM.
Samsung SDI's decision to allocate a significant portion of the funds from its capital increase to the expansion and renovation of its factory in Hungary is due to the growing electric vehicle sales in the European market. According to SNE Research, the number of electric vehicles delivered in Europe reached 898,000 in the first quarter of this year, marking a 22.8% increase compared to the same period last year. While the growth rate is lower than China's (46.1% increase, 2,589,000 units), Europe is the second-largest market for electric vehicle sales globally. In North America, 315,000 electric vehicles were sold in the first quarter, reflecting only a 6.6% increase compared to the same period last year.
The battery industry is paying attention to POSCO FUTURE M’s capital increase following Samsung SDI's successful completion of its capital increase. The board of directors of POSCO FUTURE M resolved to raise 1.1 trillion won on the 13th. This figure is obtained by multiplying the planned issuance price of 95,800 won by 11,483,000 shares to be issued. The date for determining the final issuance price is July 16, and subscriptions are expected to take place from July 21 to 25.
POSCO FUTURE M has launched a capital increase to secure operating and investment funds. POSCO FUTURE M plans to invest 353.4 billion won and 277.3 billion won respectively for a joint venture factory with GM in Canada for cathode materials and for acquiring equity in a graphite business. It also plans to invest 63.2 billion won for facility investments at cathode material factories in Gwangyang and Pohang and 288.4 billion won for purchasing materials and supplies and operating funds at a precursor factory in Gwangyang.
Earlier, POSCO FUTURE M established a company tentatively named Gabon New Materials Company to produce spherical graphite, an intermediate material for anode materials, domestically. Previously, it had relied on importing spherical graphite from China to produce anode materials, aiming to reduce dependence on Chinese imports.
POSCO FUTURE M stated, "North American clients hope to completely exclude China from their supply chains, and aim to source materials from outside China or within North America," adding, "Carbon New Materials Company plans to produce spherical graphite, which is an intermediate material for natural graphite anodes."
POSCO Holdings, the major shareholder of POSCO FUTURE M, announced on the 13th its participation in the capital increase. Increased expectations for stock price stability emerged as the major shareholder expressed commitment to the battery materials business. A POSCO FUTURE M representative noted, "We will complete our investment projects to expand cathode and anode production capacities both domestically and internationally to strengthen our competitiveness in the manufacturing of secondary battery materials."