On the 27th, Samsung SDI announced record sales of 5.8406 trillion won and an operating profit of 450.2 billion won for the second quarter of 2023. This marks the highest revenue and operating profit for a second quarter and has been the fourth consecutive quarter surpassing 5 trillion won in sales.

Compared to the same period last year, sales increased by 1.0998 trillion won (23.2%), and operating profit rose by 21.2 billion won (4.9%). Compared to the previous quarter, sales increased by 485.8 billion won (9.1%), and operating profit grew by 74.8 billion won (19.9%). The operating profit margin recorded 7.7%.

The battery division recorded sales of 5.2701 trillion won, increasing by 1.1985 trillion won (29.4%) compared to the same period last year and by 472.3 billion won (9.8%) compared to the previous quarter. Operating profit was 388.1 billion won, an increase of 143.2 billion won (58.5%) year-on-year and 71.7 billion won (22.7%) quarter-on-quarter. The operating profit margin was 7.4%.

In the mid-to-large battery segment, demand for automotive batteries increased due to the expansion of premium vehicle sales from key customers using the P5 battery. ESS batteries saw sales improvements focusing on power supply and UPS as it transitioned from the seasonal lull.

The small battery segment achieved solid performance centered on cylindrical batteries. Sales for cylindrical batteries expanded, especially in high-output products, leading to improved revenue and profitability. Pouch-type batteries experienced a slight decline in sales due to reduced demand for IT products.

The electronic materials segment recorded sales of 570.5 billion won, a decrease of 98.7 billion won (−14.7%) compared to the same period last year, but an increase of 13.5 billion won (2.4%) over the previous quarter. Operating profit was 62.1 billion won, down 122.0 billion won (−66.3%) year-on-year, but an increase of 3.1 billion won (5.3%) compared to the previous quarter. The operating profit margin was 10.9%.

Though semiconductor materials sales decreased due to sustained weak IT demand, sales of polarized films gradually recovered, providing a slight improvement in the performance of the electronic materials segment.

Despite uncertainties stemming from a slowdown in global economic growth, the battery market is expected to expand, primarily driven by electric vehicles and ESS. Samsung SDI anticipates continued growth as all business divisions experience increases in sales and profit.

For automotive batteries in the mid-to-large battery segment, they intend to respond promptly to customer demand through the activation of new lines in Hungary. It is expected that the P5 battery will account for over 50% of the sales share of prismatic automotive batteries, driving performance growth. For ESS batteries, the launch of new products is anticipated to boost sales focused on power supply.

The small battery segment is expected to see sales growth driven by electric vehicles and M-Mobility, increasing both revenue and profit. Although recovery in the power tools market is delayed, plans to expand into new applications are underway.

The electronic materials sector is expected to see ongoing revenue growth centered around display materials like polarizing films and OLED, with profitability improving compared to the first half of the year. Demand for semiconductor materials is forecasted to gradually recover, and sales are expected to expand through the entry of new products.

Samsung SDI is preparing future growth engines to seize the next-generation battery market alongside its proactive ordering activities.

Recently, Samsung SDI signed an MOU for the construction of the second plant for StarPlus Energy, a joint venture with Stellantis. Together with the previous MOU signed with GM in April, Samsung SDI will secure a production capacity of approximately 100 GWh annually in the U.S. by 2027, combining the StarPlus Energy plants 1 and 2.

Samsung SDI has completed the setup for its all-solid-state battery pilot line and has begun producing development prototypes while also starting pilot production of its 46mm cylindrical battery line.

Samsung SDI plans to continue its order and investment activities in line with a mid-to-long-term business strategy suited to market growth.

In the second quarter, Samsung SDI completed the calculation of Scope 3 emissions, which represent the indirect greenhouse gas emissions occurring throughout the entire value chain.

Furthermore, it became the first in the secondary battery industry to receive carbon footprint certification for its battery products from ‘Carbon Trust’, a UK-based eco-friendly certification body, pushing forward major tasks for environmentally friendly management.

Samsung SDI has unveiled its ‘Sustainability Management Report 2023’, detailing its ESG management activities and achievements on its official website.

Choi Yoon-ho, CEO of Samsung SDI, stated, “Despite the global economic slowdown, we achieved record sales for the second quarter and surpassed 5 trillion won in sales for the fourth consecutive quarter,” adding, “Samsung SDI will secure competitive technological advantages through solid-state batteries and 46mm cylindrical batteries for sustained growth.” He further emphasized, “We will strive to grow as a global leader by making ESG management a cornerstone of our corporate competitiveness.”

Lee Sang-jin daedusj@autodiary.kr