Samsung SDI Targets Second-Half Profitability with Next-Generation Batteries

Samsung SDI has announced a future growth strategy to turn its second-half performance into profit this year, banking on next-generation solid-state batteries that dramatically reduce fire risk and large-scale Energy Storage Systems (ESS). Choi Ju-sun, President of Samsung SDI, stated that the global battery market is accelerating its growth due to the expansion of front-end industries such as Artificial Intelligence (AI), and announced the company's aim to achieve quarterly profitability within the second half of this year.

Samsung SDI recently signed a supply contract for ESS batteries in the U.S. worth approximately 1.5 trillion Korean won, with product supply set to continue until 2029. This contract is a measure to respond to the growing demand for power storage driven by the increase in AI data centers and the expansion of renewable energy.

Samsung SDI is focusing on technology development with the goal of mass-producing solid-state batteries by 2027 and is expanding its customer base through lithium iron phosphate (LFP) and mid-nickel products. The company is also considering applications for sodium-ion batteries in Uninterruptible Power Supplies (UPS) and is moving to secure lithium-metal battery technology.

Assets worth approximately 11 trillion Korean won, secured from the partial sale of Samsung Display shares, will be utilized for investments in solid-state batteries and ESS, among other areas.

Samsung SDI announced at its 56th regular shareholders' meeting that it would achieve quarterly profitability within the second half of this year. At the meeting, proposals for financial statement approval, partial amendment of the articles of incorporation, and director appointments were passed as originally proposed. Samsung SDI supported shareholder participation by combining electronic voting with online live broadcasting.