Samsung SDI sells $3.2 billion stake in Samsung Display to fund battery plant

Samsung SDI announced on June 21st that it will sell its holdings of Samsung Display shares, valued at approximately 4.5 trillion won (about $3.2 billion), to secure crucial investment capital. The primary goal is to finance the production of batteries for energy storage systems (ESS), particularly for data centers.

The company disclosed its decision to transfer 13,088,235 shares of Samsung Display, representing about 33% of Samsung SDI's existing stake in the display manufacturer. This transaction will reduce Samsung SDI's ownership in Samsung Display from 15.2% to 10.2%.

While Samsung SDI has not detailed the exact allocation of these funds, it is widely expected that the proceeds will be channeled into the Synergy Cells plant currently under construction in Indiana, USA. This facility was initially a joint venture with General Motors (GM), but Samsung SDI recently acquired GM's entire stake, taking sole operational control.

Samsung SDI plans to establish battery production lines at the Synergy Cells plant specifically for infrastructure supporting artificial intelligence (AI) data centers, including ESS. This strategic move underscores the company's focus on expanding its presence in the growing market for AI-related energy solutions.