SEOUL, November 04 (AJP) - Shares of Samsung SDI climbed more than 4 percent in afternoon trading on Tuesday following a news report that the South Korean battery maker may supply more than 3 trillion won ($2.08 billion) worth of energy-storage system batteries to Tesla over the next three years.
As of 2:20 p.m. in Seoul, Samsung SDI’s stock was up 4.1 percent at 340,500 won, extending gains after the report circulated in local media. The company, a unit of Samsung Group, develops rechargeable batteries for electric vehicles, energy-storage systems and IT devices, as well as electronic materials for semiconductors and displays.
The report said Tesla’s demand for energy-storage systems, or ESS, has grown rapidly amid heavy investment in artificial intelligence data centers — prompting the U.S. electric vehicle maker to seek additional battery suppliers. If finalized, the deal could involve batteries produced at Samsung SDI’s factory under construction with Stellantis in Kokomo, Indiana, according to the report.
When the Indiana project was announced in October 2023, CNBC reported that the two companies planned to invest about $3.2 billion in the facility. Industry analysts estimate that the potential Tesla supply agreement could reach an annual capacity of roughly 10 gigawatt-hours.
Samsung SDI, however, denied that a deal had been concluded.
“Reports suggesting that a deal between the two companies had been finalized are not true,” a company spokesperson said. “Negotiations are still underway, and the company has issued a regulatory filing to clarify the matter.”
The market reaction also lifted sentiment toward Samsung SDI’s suppliers, including EcoPro BM, which produces cathode materials used in the company’s batteries.
EcoPro BM reported an operating profit of 50.7 billion won ($36.6 million) for the third quarter, marking its third consecutive quarterly profit, driven by higher sales of energy-storage materials and investments in nickel refining projects in Indonesia.
EcoPro BM, which also supplies SK On, said its 10 percent stake in an Indonesian nickel smelting project has helped stabilize raw material sourcing and improve profitability. The company expects further growth once its new plant in Debrecen, Hungary, begins operations.
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