Samsung SDI (006400)

Samsung SDI, an electronics affiliate of Samsung Group established in 1970, operates in the secondary battery and electronic materials businesses. In its main business area, the Energy Solutions division, the company produces and sells small-sized lithium-ion batteries used in smartphones, laptops, wearable devices, and power tools, as well as medium-to-large-sized batteries for electric vehicles (EVs) and energy storage systems (ESS). Notably, it holds a leading position in the small-sized lithium-ion battery market with approximately 26.8% global market share. The Electronic Materials division supplies semiconductor and display materials (such as OLED materials, EMC, and CMP slurries). Revenue is generated approximately 93% from the battery business and 7% from the electronic materials business, indicating a battery-centric business structure. Key customers include global automotive OEMs such as BMW, Rivian, Stellantis, Volkswagen, and Mercedes-Benz, as well as IT device manufacturers like Samsung Electronics, HP, and Dell. Samsung SDI's core competitiveness lies in its "super-gap" technology strategy and extensive R&D investments. In particular, it is a leader in solid-state battery technology development, alongside companies like Toyota and CATL, aiming for commercialization by 2027. As of 2024, its annual R&D investment is approximately $1 billion, ranking second globally after CATL, focusing on improving key performance metrics such as high energy density, ultra-fast charging, and long lifespan, as well as securing next-generation material technologies. Furthermore, it maintains technological leadership by strengthening its patent portfolio for core technologies, including prismatic and solid-state batteries. The company is securing price competitiveness through the development of cobalt-free material batteries such as NMX and LMFP, and portfolio diversification through the expansion of its ESS and IT battery markets is also a strength. Samsung SDI's annual revenue increased by 6.52% from KRW 20,124.1 billion in 2022 to KRW 21,436.8 billion in 2023. However, it then decreased by 22.51% to KRW 16,592.2 billion in 2024, and further declined by 20.04% to KRW 13,266.7 billion in 2025, showing a downward trend. Operating income recorded KRW 1,808.0 billion in 2022, but in 2025, it posted significant quarterly losses. Specifically, it recorded operating losses of KRW -434.1 billion in Q1 2025, KRW -193.5 billion in Q3, and KRW -1,131.1 billion in Q4. Net income was favorable at KRW 2,039.4 billion in 2022 and KRW 2,066.0 billion in 2023, but it sharply declined by 72.15% to KRW 575.5 billion in 2024, and turned to a loss of KRW -584.9 billion in 2025. Overall, a clear trend of recent revenue decline and deteriorating profitability is evident. Examining Samsung SDI's financial soundness, its debt-to-equity ratio recorded 75.74% in 2022. The current ratio has shown a gradual decline, from 120.54% in 2022 to 107.84% in 2023, 95.20% in 2024, and 89.23% in 2025. ROE (Return on Equity) maintained double digits at 11.84% in 2022 and 10.38% in 2023, but significantly dropped to 2.67% in 2024, and turned negative at -2.48% in 2025, indicating that deteriorating profitability is impacting financial soundness. Going forward, Samsung SDI is expected to focus on securing stable revenue streams through portfolio diversification, including ESS and IT batteries, in response to the temporary slowdown (chasm) in the EV market. In particular, explosive growth in the ESS market is anticipated due to the proliferation of AI data centers, and Samsung SDI plans to expand local ESS mass production for the U.S. power market and increase sales of high-output UPS for data centers. Furthermore, by preempting next-generation technologies such as the commercialization of solid-state batteries and the development of 46-phi cylindrical batteries, the company is expected to secure a "super-gap in technology" and strengthen cooperation with global OEMs, thereby establishing mid-to-long-term growth momentum.