This file photo provided by Samsung SDI Co. shows its headquarters in Giheung, 32 kilometers south of Seoul. (Yonhap)
SEOUL, April 25 (Korea Bizwire) — Samsung SDI Co., South Korea’s second-biggest battery maker, said Friday it swung to a net loss in the first quarter from a year earlier due to a prolonged slump in the electric vehicle (EV) market.
In the three months ended March, the company posted a net loss of 216 billion won (US$150.5 million), compared with a profit of 286.7 billion won in the same period last year, it said in a regulatory filing.
“Customers’ readjustment of their inventories led to decreased sales of batteries for EVs and power tools. Lower utilization rates at the company’s production facilities and higher fixed costs ate into the bottom line,” the company said in a release.
Samsung SDI also reported an operating loss of 434.1 billion won, shifting from an operating profit of 249.1 billion won a year earlier. Sales fell 34 percent to 3.17 trillion won from 4.82 trillion won over the cited period.
In addition to high-end lithium-ion batteries, Samsung SDI is developing lithium iron phosphate (LFP) and next-generation solid-state batteries, with mass production targeted for 2026 and 2027, respectively.
LFP batteries are known for their improved safety and lower manufacturing costs, despite lower energy density and shorter driving ranges compared with lithium-ion and nickel-cobalt-manganese (NCM) batteries commonly used by South Korean manufacturers.
In March, Samsung SDI began supplying next-generation 46-series cylindrical batteries to a U.S. company.
Regarding uncertainties surrounding U.S. tariff policies, a company spokesperson said, “Our expanded partnerships with global carmakers in the U.S. will help minimize the impact of tariffs in the coming quarters.”
In partnership with Stellantis N.V., Samsung SDI began operations at its first U.S. battery plant in Indiana in December. A second facility is currently under construction adjacent to the first.
The company also partnered with General Motors Co. in August 2024 to build another EV battery plant in Indiana, with operations slated to begin in 2027.
(Yonhap)
