Samsung SDI, a South Korean battery manufacturer, has lowered the price of its upcoming share sale to 140,000 won (US$100.37) per share, a drop of 17% from the March proposal of 169,200 won (US$121.31).

The adjustment comes after a recent decline in Samsung SDI’s stock value, which has been affected by broader market concerns, including the potential impact of new US tariffs.

This is the second time the company has revised its share sale price since March. However, the company has not disclosed further details regarding the timeline for the share sale.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Samsung’s share cut reflects broader battery industry challenges amid pricing pressures

Samsung SDI’s 17% share price reduction comes at a time when the entire battery industry faces significant market pressures and price volatility.

The global lithium-ion battery market has experienced dramatic price declines, with average pack prices dropping 20% in 2024 to reach US$115 per kWh—a record low driven by increased production capacity and lower material costs 1.

This price compression has created challenging conditions for manufacturers, with lithium prices falling over 85% from their 2022 peak, squeezing margins across the industry 2.

For Samsung SDI specifically, these market pressures contributed to significant financial challenges, with the company reporting losses of 434.1 billion won (US$311 million) in Q1 2025 3.

The contrast between expanding global battery manufacturing capacity (now at 3 TWh) and actual demand (just over 1 TWh) has created an oversupply situation that continues to put downward pressure on both battery prices and related company valuations 2.

2️⃣ US tariff policies are reshaping global battery manufacturing strategies

The recent 145% tariff imposed by the US on Chinese lithium-ion batteries has fundamentally altered competitive dynamics in the battery industry, creating both challenges and opportunities for Korean manufacturers like Samsung SDI 4.

These tariffs have directly contributed to market uncertainty and the sell-off affecting Samsung’s share pricing, as investors reassess the complex implications for global battery supply chains and manufacturing economics 5.

Samsung SDI is strategically responding by exploring options to establish energy storage system (ESS) production lines in the United States, following competitors like LG Energy Solution which is accelerating LFP battery production in Michigan 43.

The tariff situation has created a significant opportunity for Korean battery makers in the North American ESS market, where Chinese companies previously held an 87% market share that is now vulnerable due to tariff-driven price increases 4.