[Special Stock] Samki, "Overwhelmed by Flood of Electric Vehicle Quote Requests"... US Local Aluminum Die Casting Up

[Asia Economy Reporter Hyungsoo Park] Samgi is showing strong momentum day after day. The expectation that it will benefit from the implementation of the Inflation Reduction Act (IRA) in the United States seems to be influencing its stock price. The company expects to achieve full-scale growth by producing electric vehicle parts and secondary battery components.

As of 10:14 AM on the 13th, Samgi is trading at 4,720 KRW, up 11.06% from the previous trading day. It has been on an upward trend since the 2nd.

Lee Dongwon, CEO of Samgi, stated at the corporate briefing held on the 7th, "We aim to achieve sales of 1 trillion KRW by 2026 through entry into the U.S. market." He added, "Currently, we are receiving so many quotation requests from electric vehicle OEMs in Korea and the U.S. that it is difficult to handle them all," and "We expect Samgi’s consolidated sales to reach 1 trillion KRW by 2026."

With Hyundai Motor planning to complete an electric vehicle-only factory in Georgia, USA by 2025, Samgi is expected to benefit as the sole primary aluminum die-casting partner.

CEO Lee explained, "Aluminum die-casting has become an indispensable core technology in the electric vehicle era," adding, "It is essential not only for electric vehicle drive parts such as motors, inverters, and reducers but also for lightweight vehicle bodies and chassis." He further noted, "With the passage of the IRA in the largest electric vehicle market, North America, we anticipate increased demand for die-casting."

He also emphasized, "Hyundai Motor has already selected Samgi as the body supplier for its premium brand SUVs," and "Hyundai’s reducer cases are already in mass production for the Niro and Ioniq 6, and we are currently developing reducer cases for the Ioniq 7."

As the only primary die-casting partner of Hyundai Motor and Kia among die-casting companies that have entered the U.S., Samgi is likely to accelerate its growth. Since Hyundai Motor’s electric vehicle-only factory is located in the Havana area of Georgia, significant orders are expected.

In October 2020, Samgi established SamgiEV by splitting off its electric vehicle battery-related business to advance its business. SamgiEV has submitted an application for preliminary review for listing on the KOSDAQ market this year, aiming for an initial public offering (IPO). The funds raised through the listing are planned to be used for expansion into the U.S. market.