Samsung SDI borrows 350B won to chase Korea's 1T won ESS contract
What's the deal? Samsung SDIDealroom has a profile for this one. Try Dealroom → has raised 350 billion won (≈$246 million) in policy debt through the Supply Chain Stabilization Fund operated by the Export-Import Bank of KoreaDealroom has a profile for this one. Try Dealroom →. The battery maker secured the loan at an interest rate in the 3% range, with a three-month maturity — its first use of the fund.
Where the money goes: Samsung SDI will spend the funds buying battery and energy storage system (ESS) materials and components from domestic small and mid-sized suppliers. A financial industry official said the company "repaid a significant portion of its existing loans from commercial banks and switched to the supply chain fund," cutting procurement costs in the process.
Why now? The Korea Power Exchange holds a third ESS bidding round worth 1 trillion won next month. Evaluation criteria increasingly reward domestic sourcing: in the second round, the weighting of non-price factors, including use of domestic equipment and safety, rose from 40% to 50%.
What's the endgame? By lifting the share of domestic materials in its products, Samsung SDI aims to score higher on those criteria and defend its lead. It won 55.8% of combined volume across the first two rounds, ahead of SK OnDealroom has a profile for this one. Try Dealroom → at 25.1% and LG Energy SolutionDealroom has a profile for this one. Try Dealroom → at 19%.
What could go wrong? The three-month maturity is short, and the third-round weighting has not yet been disclosed. Rivals are moving too: SK On plans a 3GWh LFP battery line for ESS this year, while LG Energy Solution is building an LFP line of more than 1GWh at its Ochang plant.
The signal: Government ESS demand — meant to steady output from renewables — is reshaping how Korea's top battery makers compete, shifting the contest from price toward local supply chains. Winning at home also serves as a reference point for the makers as they pursue global markets such as the US.
Read more: Seoul Economic Daily
Image credit: GeniesserGraz
