Samsung SDI, which is about to supply batteries for next-generation electric vehicles, achieved record-breaking results in both sales and operating profit in the second quarter. Sales exceeded 3.3 trillion KRW, the highest ever, and operating profit also achieved positive results as the electric vehicle battery business turned into profit-making for the first time in last six quarters.
Samsung SDI announced on the 27ththat it recorded 3.33 trillion KRW in sales and 295.2 billion KRW in operating profit in the second quarter of this year. Sales increased 30.3% compared to the same period last year and operating profit soared 184.4%.
This is higher than the market forecast of 3.3trillionKRW in sales estimated by financial firms. In terms of operating profit, the company also achieved a good performance of nearly 300 billion KRW caused by the brisk mid-to-large battery business, including electric vehicle batteries.
Sales in the second quarter were the largest ever recorded by Samsung SDI. The previous highest sales were 3.2512 trillion KRW in the fourth quarter of 2020. Operating profit recorded triple-digit growth compared to the previous quarter as electric vehicle batteries succeeded in turning into profit-making after the fourth quarter of 2019.
Samsung SDI said, “In the second quarter, we achieved meaningful results in terms of sales growth and profit expansion thanks to the brisk battery business.” It was found that sales of mid-to-large sized batteries used in electric vehicles and energy storage systems (ESS) surged due to increased demand from customers in Europe and North America.
The company explained that the sales of small batteries increased significantly as sales in the power tool market increased with the position of the No. 1 business operator in the market. Sales of pouch batteries used in smart phones have also surged.
In the electronic materials business, earnings expanded compared to the previous year due to increased demand for semiconductor materials, organic light emitting diode (OLED) materials, and increased demand for large liquid crystal display (LCD) polarizing films.
Samsung SDI set a goal to continue its mid-to-large battery surplus with the arrival of the peak season for the electric vehicle battery market in the second half of the year. As for electric vehicle batteries, the supply of the next-generation battery 'Gen 5', which is about to be mass-produced, is being newly supplied.
Gen 5 is a battery product incorporating the latest technology from Samsung SDI. High-nickel NCA technology has been applied to increase the mileage, reduce the use of expensive cobalt, and improve profitability. Younghyun Jeon, president of Samsung SDI, visited the European Göd plant last month to check the supply status of Gen 5 while overseas business trips were restricted due to COVID-19. Mikael Son, senior managing director of Samsung SDI's mid-to-large battery strategy marketing, said, "Starting with BMW, the supply of Gen 5 will begin in earnest in the second half of the year, and supply will expand as EV manufacturers diversify from next year."
Samsung SDI plans to expand the supply of new batteries by targeting the US market. Samsung SDI is known to be pushing for battery manufacturing in the US with global automakers Stellantis and Rivian.
Meanwhile, Samsung SDI is also developing all-solid-state batteries. Hyuk Jang, head of Samsung SDI's research center, said at the recently held Inter battery 2021, "We will mass-produce all-solid-state batteries before Sony in Japan."
By Staff Reporter Jiwoong Kim (firstname.lastname@example.org)