Samsung SDI Climbs on Talks With Tesla to Supply Batteriesby
Samsung SDI Co. rose as much as 8.1 percent as the company negotiates with Tesla Motors Inc. to supply batteries for electric vehicles.
Samsung SDI, a unit of the South Korean conglomerate that makes batteries and other electronics components, rose 6.3 percent to 118,500 won at 10:15 a.m. in Seoul Tuesday, after touching a high of 120,500 won. The shares had declined 2.2 percent this year before today. South Korea’s stock market was closed on Monday, when reports of the negotiations first surfaced.
Samsung SDI is in talks with Tesla to provide batteries for its electric cars, a person familiar with the matter said. The South Korean company and Tesla are likely to work out a supply deal, though nothing has been decided yet, said the person, who asked not to be identified because the matter is private.
The Nikkei reported on Monday that Tesla was considering procuring batteries from Samsung SDI. A large volume of Samsung SDI’s battery cells arrived at Tesla’s development base in California, indicating that they will be used for testing before full-scale adoption, the newspaper said.
Japan’s Panasonic Corp. already supplies batteries to Tesla, which is building a $5 billion factory in Nevada to make batteries for its electric cars. Panasonic shares fell 2 percent on Monday following Nikkei’s report.