Impact of Slowdown in EV Battery Sales
U.S. Joint Venture SPE Begins Operations
Targeting 30GWh ESS Production Capacity Next Year
On October 28, Samsung SDI announced that its consolidated operating loss for the third quarter of this year amounted to 591.3 billion won, turning to a loss compared to the same period last year. Revenue decreased by 22.5% to 3.0518 trillion won.
By business segment, battery sales reached 2.82 trillion won, a decrease of 23.2% year-on-year. The operating loss expanded to 630.1 billion won, primarily due to a slowdown in electric vehicle battery sales and the impact of U.S. tariff policies on energy storage systems (ESS). The electronic materials segment recorded sales of 231.8 billion won, down 12.1% from the previous year, with an operating profit of 38.8 billion won.
Samsung SDI assessed that, despite a challenging business environment, it achieved meaningful results by focusing on expanding orders for batteries used in electric vehicles and ESS. Earlier this year, the company signed supply contracts totaling 110GWh with global automakers for cylindrical 46mm and prismatic batteries, and also succeeded in securing orders in Korea’s central contract market for ESS. In addition, Samsung SDI introduced new products, 'SBB 1.7' (NCA) and 'SBB 2.0' (LFP), to establish a next-generation ESS lineup tailored for the U.S. market.
The company expects its performance to improve in the fourth quarter, driven by growth in the European electric vehicle market and the U.S. ESS market. Samsung SDI stated that it will focus on strengthening its ESS market capabilities, expanding its share in the electric vehicle market, and improving operational efficiency.
This month, Samsung SDI began production of NCA-based batteries at StarPlus Energy (SPE), its joint venture with Stellantis in the United States. In the fourth quarter of next year, the company plans to convert its production line to LFP batteries, aiming to expand its annual ESS battery production capacity in the U.S. to approximately 30GWh.
A Samsung SDI representative stated, "Demand for prismatic batteries with high safety and energy density is increasing," adding, "As the only non-Chinese supplier of prismatic batteries, we will further strengthen our competitiveness in the U.S. ESS market."
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