Samsung SDI bets on premium EV market in 2023

Samsung SDI booth at InterBattery 2020

Samsung SDI has posted a record annual revenue of KRW 20.12 trillion and operating profit of KRW 1.8 trillion in 2022.

Samsung SDI’s fourth quarter revenue stood at KRW 5.96 trillion (56.3 percent) and operating profit at KRW 490.8 billion (84.7 percent), hitting the record highs in its quarterly results.

Samsung SDI’s energy businesses posted revenue of KRW 5.34 trillion (+71.9 percent) with operating profit it of KRW 359.1 billion.

Samsung SDI’s Automotive & ESS Business saw a significant jump in the revenue from the previous quarter. Automotive battery revenue continued to expand pushed by strong supply of P5 (Gen5), and ESS batteries recorded a higher revenue thanks to increased utility sales.

Samsung SDI’s Small Battery Business maintained a quarterly revenue on par with the previous quarter. Amid a slump in power tool demand, Samsung SDI managed to mitigate the impact from such low demand by focusing on making long-term supply agreements with key customers.

Samsung SDI’s Electronic Materials Business posted KRW 624.3 billion in revenue, which was down 11.9 percent from the corresponding period last year, and up 16.9 percent from a quarter earlier.

In the first quarter of 2023, the P5 sales will lead the sales expansion for the Automotive & ESS Battery Business. Samsung SDI expects to see revenues going up in both automotive and ESS batteries compared to the same period last year. Automotive batteries will post higher sales of P5 being built into new vehicle models, boosted by new production line in Hungary.

Samsung SDI said the first quarter sales of the Small Battery Business will drop from the previous quarter but the year-on-year growth is expected to be positive.

In cylindrical battery segment, the seasonal lull is likely to affect the power tool battery sales while EV battery sales is expected to jump up. The power tool demand will bounce back in the second quarter, improving the sales.

Pouch battery sales are expected to rise slightly compared to the previous quarter, stoked by release of new flagship smartphone models.

The Electronic Materials Business is forecast to see a decline in sales due to a seasonal low-demand. However, the Company plans to minimize the expected decline through supplies of polarizer films and semiconductor materials.

Business Outlook for the FY 2023

The automotive battery market is projected to grow by 40 percent from the previous year, reaching a value of 159 billion dollars, by the end of 2023.

Samsung SDI plans to continue its high growth from the last year, where P5 battery will propel the sales increase in the premium EV market. Samsung SDI will maintain its drive for obtaining projects and developing and producing next generation products such as solid-state battery, to pave way for the mid-to-long term growth.

The small-sized lithium battery market is forecast to grow by 7 percent from the last year, reaching 38 billion dollars.