South Korean battery maker Samsung SDI expects battery sales to pick up in the second half of the year after reporting losses during April-June.
Samsung SDI's battery sales fell 22pc on the year to 2.96 trillion Korean won ($2.12bn) during April-June, but was steady against the previous quarter, the company said in its latest quarterly earnings. The company achieved higher electronic material sales but was negatively impacted by the sluggish demand from major electric vehicle (EV) customers, it said. It narrowed its losses on the quarter to W398bn, which was a significant reversal from the W241bn operating profit it posted during April-June 2024.
The battery maker expects demand to recover gradually in the second half of the year but said risks remained due to macroeconomic uncertainties. It plans to offset expected lower demand in the US by "streamlining" efficiencies at its Starplus Energy operations, though sales into Europe remain robust.
Battery EV sales in the EU, European Free Trade Association and the UK rose sharply in the first half of this year by almost 25pc on the year and reached a market share of 15.6pc.
But more than 70pc of Samsung SDI's energy storage systems (ESS) battery sales — all shipped from South Korea — are to the US and that will be impacted by tariffs, the company said during its quarterly earnings call on 31 July.
The US and South Korea reached a trade deal on 31 July lowering tariffs to 15pc in exchange for South Korean investment.
The battery manufacturer plans to begin domestic ESS battery production in the US this year through Starplus Energy — a joint venture with auto producer Stellantis. Starplus is building a 33GWh battery gigafactory in Indiana's Kokomo. Construction of a second battery plant was agreed on between Samsung SDI and Stellantis.
Lithium-iron-phosphate ESS battery production is expected to begin in 2026, the company added.
