Samsung SDI continues to maintain profitability in the third quarter of this year, driven by increased demand for energy storage systems (ESS). The company plans to sustain this positive trend in the fourth quarter, focusing on its ESS business.
On October 29, Samsung SDI announced that it recorded revenues of 4.6856 trillion won and an operating profit of 407.8 billion won for the third quarter. This represents a 52.6% increase in revenue compared to the same period last year (3.0714 trillion won) and a turnaround from an operating loss of 591.3 billion won in the previous year. The operating profit is double that of the previous quarter (203.8 billion won) and marks the highest performance since the third quarter of 2023 (496 billion won).
In terms of business segments, the battery division saw revenues of 4.4099 trillion won, a 55.3% increase year-on-year, with an operating profit of 361.9 billion won. This growth was fueled by a surge in sales of ESS and battery backup units (BBU), as well as increased sales of cylindrical batteries for power tools and electric vehicles.
The electronic materials division reported revenues of 275.7 billion won and an operating profit of 45.9 billion won, reflecting increases of 18.9% and 18.3%, respectively, compared to the same period last year. The overall demand in the market contributed to the growth in sales of semiconductor patterning materials and display film materials for foldable smartphones.
In the third quarter, Samsung SDI achieved several milestones, including enhancing its leadership in the U.S. ESS market, advancing its lithium iron phosphate (LFP) battery business, and securing next-generation technologies and new applications.
In the U.S. ESS market, the company solidified its business foundation by strengthening local production and supply chains, securing over 60 GWh in orders this year alone due to rising local demand. Additionally, it signed long-term supply contracts for LFP cathode materials with major domestic suppliers to address the demand for de-China sourcing in the U.S.
The LFP battery business has also gained momentum. Starting this month, Samsung SDI began mass production of high-capacity prismatic LFP cells at its StarPlus Energy (SPE) facility in the U.S., while also securing projects for electric vehicle LFP batteries in Europe and continuing additional order activities.
Recently, the company unveiled cylindrical LFP cells for BBUs, expanding its product lineup for AI data centers, and is pushing for growth in the LFP business through diversification of application areas. It is also accelerating the development of next-generation technologies and exploring new markets.
Looking ahead to the fourth quarter, Samsung SDI plans to focus on the growth of the ESS market and accelerate the conversion of its LFP battery lines in the U.S. The company aims to finalize long-term supply contracts for power ESS and uninterruptible power supplies (UPS) within the year to establish a stable growth foundation.
Samsung SDI will actively participate in the third round of ESS central contract market bidding in South Korea to strengthen its market position. For electric vehicle batteries, it plans to establish production lines and supply chains for prismatic batteries at its facility in Hungary, focusing on securing new orders with high-nickel, LFP, and mid-nickel product lines.
In the small battery sector, the company intends to expand its product lineup with cylindrical LFP batteries and target global cloud companies for supply and new customer acquisition. In electronic materials, it will focus on expanding sales of semiconductor patterning materials and supplying OLED materials for new platforms from major clients.
Samsung SDI stated, "We will continue to pursue medium- to long-term growth based on profitability, and we expect the solid growth trend in the ESS and small battery businesses to continue into the fourth quarter, maintaining our profitability."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.