A South Korean battery manufacturer has announced plans to provide more than $1 billion in financing to its joint venture with a major automaker, according to regulatory documents filed Monday.
Samsung SDI disclosed it will extend a loan worth 1.6 trillion won, equivalent to approximately $1.05 billion, to StarPlus Energy, the battery production partnership it operates with automotive giant Stellantis.
According to the regulatory filing, the substantial loan will support capital investment activities for the joint venture.
The funding announcement follows recent industry reports suggesting Stellantis may be considering an exit from the American battery manufacturing partnership with Samsung SDI. These reports emerged as the automaker adjusts its electric vehicle strategy.
The speculation about a potential exit came after Stellantis reported massive writedowns exceeding $26.5 billion, which significantly impacted the company’s stock value. The losses reflect broader challenges facing traditional car manufacturers as they navigate the transition to electric vehicles.
On Monday morning, Samsung SDI stock prices rose 0.6 percent, bucking the trend of South Korea’s main stock index, which dropped 2.6 percent during the same trading period.
