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Photo = Samsung SDI |
[Alpha Biz= Paul Lee] Samsung SDI has posted a second consecutive quarterly loss. In the first quarter of this year, the company reported an operating loss of KRW 434.1 billion, driven by a slowdown in electric vehicle (EV) demand and the seasonal off-peak period for the energy storage system (ESS) market. Profitability was inevitably impacted by a combination of inventory adjustments at major customers, reduced operating rates, and increased fixed costs.
On April 25, Samsung SDI announced its first-quarter consolidated results: sales of KRW 3.1768 trillion, an operating loss of KRW 434.1 billion, and a net loss of KRW 216.0 billion. Compared to the same period last year, sales dropped by 34%, and the company swung to a loss. Although a KRW 109.4 billion benefit from the U.S. Inflation Reduction Act (IRA) Advanced Manufacturing Production Credit (AMPC) was factored in, it was insufficient to offset the overall downturn. Excluding the AMPC benefit, the loss would have exceeded KRW 500 billion.
The battery division recorded sales of KRW 2.9809 trillion and an operating loss of KRW 452.4 billion. The division was directly impacted by inventory adjustments for EV and power tool batteries, as well as the seasonal decline in ESS demand. Meanwhile, the electronic materials division showed resilience, achieving sales of KRW 195.9 billion and an operating profit of KRW 18.3 billion, driven by a recovery in demand for OLED materials.
Samsung SDI is working to strengthen its future growth foundation by accelerating the ramp-up of its first joint venture (JV1) with Stellantis in the U.S., and beginning construction of a second JV with General Motors aimed at mass production by 2027. Additionally, the company has started mass production of its new 46mm cylindrical battery, targeting new demand in areas such as micromobility, hybrid electric vehicles, and robotics.
The company reaffirmed its plan to begin mass production of solid-state batteries for EVs around 2027. Jong-sun Park, Executive Vice President of the Medium and Large Battery Strategic Marketing team, stated, "We are currently working on key tasks essential for mass production, including expanding cell capacity, stabilizing manufacturing processes, and establishing a material supply chain. Some investments are also planned for the mother line in Korea this year."
He added, "While solid-state batteries are primarily aimed at EVs, we are also exploring applications in emerging markets such as robotics and urban air mobility (UAM), which require high energy density. We are in discussions with multiple customers and plan to diversify application areas to expand business opportunities."
Regarding the ESS business, Samsung SDI noted that mid- to long-term growth prospects remain strong, supported by demand from AI and renewable energy sectors. The company plans to expand its presence in the North American and European markets, focusing on high-value-added products such as UPS (Uninterruptible Power Supply) systems and high-power batteries for power grids.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
