Samsung SDI lowers share price amid market turmoil

[WORLD] Samsung SDI has reduced the price of its upcoming rights offering by 17%, setting the new share price at 140,000 won ($100.37), down from the originally planned 169,200 won. The move comes in response to mounting global market pressures, particularly fears over new U.S. tariffs, which have triggered a wave of sell-offs and contributed to a nearly 30% decline in Samsung SDI’s stock value since the start of the year.

Major Share Price Revision Amid Economic Headwinds

In March 2025, Samsung SDI announced plans to raise 2 trillion won ($1.4 billion) through a rights offering to fund the construction of new battery manufacturing plants in the United States and Hungary, and to support R&D initiatives in advanced battery technologies. However, ongoing market volatility prompted the company to revise its offering price twice—first to 146,200 won in April, and now further down to 140,000 won.

This final price cut represents a 17% drop from the original issue price, a shift that mirrors broader investor anxieties about the economic climate and its impact on capital markets.

Tariff Fears and Stock Market Sell-Off

One of the primary drivers behind the price adjustment is growing concern over the potential implementation of U.S. tariffs on imports of electric vehicle components. As Samsung SDI relies heavily on imported materials for its EV battery production, new tariffs could significantly increase operational costs at its U.S. facilities.

These concerns have rippled through the markets. Samsung SDI’s stock has plummeted 29.5% year-to-date, a decline that not only reflects company-specific pressures but also broader unease in global equity markets.

Investor sentiment has been further shaken by geopolitical tensions and tightening monetary policy in major economies, exacerbating the sell-off in high-growth tech and clean energy sectors.

Adjusting Strategy to Navigate Market Volatility

In light of the changing financial landscape, Samsung SDI has scaled back the total size of its rights offering from 2 trillion won to 1.7168 trillion won. This adjustment has led the company to reduce its planned investments, including trimming facility expansion budgets by 1 trillion won.

Despite these cutbacks, Samsung SDI insists that its long-term strategic goals remain unchanged. The company continues to invest heavily in next-generation energy storage technologies such as solid-state batteries and lithium iron phosphate (LFP) batteries—key innovations that are expected to drive the next wave of electric vehicle performance and affordability.

“We are making necessary adjustments in the face of short-term market turbulence, but our focus on long-term innovation and sustainability remains firm,” a company spokesperson said in a statement.

Long-Term Outlook Remains Positive

While the immediate future poses financial and operational challenges, analysts believe Samsung SDI’s focus on high-tech battery development could pay off as global EV adoption accelerates. Strategic partnerships with automakers, increasing demand for energy storage systems, and a growing emphasis on clean energy technologies may help the company weather current headwinds.

Samsung SDI's revised rights offering signals a pragmatic response to economic uncertainty. As the battery industry faces rising costs and geopolitical complexity, flexibility and innovation will be critical to sustaining growth.