Samsung SDI announced on July 31 that its consolidated sales for the second quarter of this year amounted to KRW 3.1794 trillion, with an operating loss of KRW 397.8 billion, turning to a loss compared to the same period last year. Sales decreased by 22.19% year-on-year, while the operating loss narrowed by more than KRW 30 billion compared to the previous quarter.
Sales in the battery division reached KRW 2.9612 trillion, down 0.7% from the previous quarter and 23.5% from the same period last year. The operating loss was KRW 430.8 billion, which is a 4.8% reduction from the previous quarter, but it turned to a loss compared to the same period last year.
Sales for energy storage systems (ESS) and battery backup units (BBU) increased, but overall sales remained at the previous quarter's level due to a slowdown in electric vehicle demand from major customers. Despite continued fixed cost burdens due to delayed sales recovery and decreased profitability of ESS batteries caused by tariff impacts, the loss narrowed slightly thanks to improved profitability in the small battery segment.
The electronic materials division recorded sales of KRW 218.2 billion, up 2.4% year-on-year. Operating profit was KRW 33 billion. Increased sales of OLED materials driven by new smartphone launches from major customers, as well as higher semiconductor wafer production, contributed positively.
Main Achievements in the First Half of 2025
During the first half, amid increasing uncertainty in the business environment, the company strengthened order activities in the electric vehicle and ESS divisions, securing a foundation for future growth.
In the electric vehicle battery segment, Samsung SDI signed a supply contract for 46mm cylindrical batteries for premium electric vehicles with a global OEM in Europe, and is continuing discussions for lithium iron phosphate (LFP) and nickel cobalt aluminum (NCA) prismatic battery projects with other OEMs in the United States and Europe.
In the ESS battery segment, the company secured multiple projects in the recent first domestic ESS central contract market bidding, and also signed contracts for power ESS projects in the United States, with plans to begin local mass production in the fourth quarter.
Market Outlook and Strategies for the Second Half of 2025
In the second half, sales are expected to increase gradually and profitability is also expected to improve to some extent, but the impact of macroeconomic uncertainty is expected to persist.
For the electric vehicle battery division, the company aims to minimize the impact of demand fluctuations by improving line operation efficiency at StarPlus Energy, its joint venture with Stellantis in the United States. It also plans to expand orders in the mass-market electric vehicle segment by introducing new products such as prismatic LFP batteries with various chemistries.
In the ESS battery division, Samsung SDI plans to establish a local mass production system in the United States and begin production within the year, while also expanding sales through domestic power grid stabilization projects. In addition, the company will actively pursue orders for power LFP batteries and ultra-high-power batteries for uninterruptible power supply (UPS) systems, in response to the growing share of renewable energy and the increase in artificial intelligence (AI) data centers.
For the small battery segment, the company will expand sales of high-power batteries for BBU and plans to launch new tabless cylindrical batteries to increase sales for power tool applications. Furthermore, the electronic materials division expects continued growth driven by increased demand for OLED and semiconductor materials, and will seek to expand market share by supplying to new platforms in a timely manner and introducing new products.
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