Samsung SDI (006400)

[Business Overview] Samsung SDI is one of Korea's two largest EV battery cell manufacturers (alongside LG Energy Solution and behind LGES in scale), supplying BMW, Stellantis, GM, Volvo, and Rivian. The company also operates a profitable small-format battery business (smartphones, laptops, power tools) and an electronic materials business serving display, semiconductor, and printed-circuit-board customers. [Core Competitiveness] Samsung SDI's edge is in cylindrical 21700/46xx cell formats (the platform behind the Stellantis JV and GM second-gen EV programs), nickel-rich NCA chemistry, and electronic materials that ride Samsung Display's OLED roadmap. Premium-OEM relationships (BMW, Audi) deliver higher ASPs than the volume-OEM mix at peers. [Earnings Analysis] 2024 EV battery earnings were cyclically weak as the sector destocked, partially buffered by the Stellantis JV (StarPlus Energy) IRA credits beginning in mid-2024. 2025 results improved as customer EV programs re-accelerated and electronic materials demand stabilized. [Financial Health] CapEx-heavy due to North American capacity build (StarPlus Energy with Stellantis, JV with GM). Net debt elevated but manageable for an investment-grade Samsung-group affiliate. [Outlook] BMW/Audi premium-EV mix, Stellantis JV ramp, and 46xx cylindrical cell qualifications (rumored Tesla pipeline) are the swing factors. Risks include EV demand miss, US IRA policy reversal, and Chinese cell competition in Europe.