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(Bloomberg) — Samsung SDI Co. will raise 2 trillion won ($1.4 billion) selling new shares to fund investments in US and European facilities, as the South Korean battery maker bets on long-term growth of the electric-vehicle industry.

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Total outstanding shares will increase by 16.8% as a result, according to the company. The new shares are expected to be sold at 169,200 won each, a 17% discount to the stock’s Thursday close. 

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Shares fell as much as 5.7% in Seoul trading, heading for the lowest close in five years.

Samsung SDI and LG Energy Solution Ltd., two of South Korea’s largest battery makers, have seen their stocks slump this year amid an uncertain outlook for the EV industry. Samsung SDI reported an operating loss last quarter, the first since 2017, citing a hit to its battery business from weak demand for plug-in vehicles. 

The company has, however, kept plans for new manufacturing facilities intact despite President Donald Trump’s anti-EV rhetoric and uncertainty around Europe’s subsidies for the industry.

The company will spend the proceeds of the share sale on a joint facility with General Motors Co. and boost production capacity for its plant in Hungary, Samsung SDI said in a statement. It will also invest to build assembly lines for manufacturing all-solid-state batteries in South Korea, it added.

The company will “actively pursue” development of new technologies such as lithium-iron-phosphate cells and keep its investments plans with GM and Stellantis NV, it added. Global carmakers are maintaining their strategy for mid-to-long term growth of electric vehicles, Samsung said, despite worries over cooling demand for EVs recently. 

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Samsung is weighing the idea of another manufacturing plant in the US, signaling optimism about the market’s growth, Chief Executive Officer Joo Sun Choi said earlier this month. In the US, Samsung has plans to build plants in collaboration with GM and Stellantis and has already completed another facility with Stellantis. 

Samsung Mulls US Battery Plant Despite Trump Anti-EV Stance 

“The financing appears to be aimed at supporting its plan to mass produce the next-generation’s solid state battery,” said Rho Wooho, an analyst at Meritz Securities Co. “Given this industry needs to ensure financial soundness, the company probably could not resort to borrowing from outside.” 

—With assistance from Shinhye Kang and Youkyung Lee.

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