Samsung SDI to Focus on ESS for Improved Q4 Performance

Samsung SDI has announced that it plans to continue its performance improvement in Q4, focusing on energy storage systems (ESS). With battery sales expected to face challenges due to inventory adjustments and slowing demand in the electric vehicle market, the company aims to strengthen the competitiveness of its ESS products, including the Samsung Battery Box (SBB). Nonetheless, given the long-term growth outlook for the EV market, Samsung SDI intends to expand orders through initiatives such as establishing additional sites in the U.S.Michael Sohn, Vice President of Samsung SDI, stated in an earnings call on the 30th, “We expect to see performance improvement centered around ESS in Q4, with high growth in power SBB for the Americas and increased sales of power and UPS units for Europe.”He also noted, “In automotive batteries, sales of high-value products aligned with new car launches from key European customers are anticipated to increase. However, the impact of customer inventory adjustments and slowing demand growth will limit the scope of improvement.”Samsung SDI confirmed plans to establish additional plants in the U.S., considering both ESS and automotive battery growth as part of its long-term strategy.Samsung SDI’s Head of Business Support, Kim Jong-seong, explained, “We are considering various options for entering additional locations in the U.S., including joint ventures (JVs) with OEMs or standalone factories, aligning with long-term strategies like ESS.”Kim also elaborated on the JV with General Motors (GM). He noted, “From 2027 to 2034, we plan to produce the premium P6 prismatic battery and supply it to GM, with an initial production capacity of 27GWh, which could expand to 36GWh through further discussions.” He added, “We expect the JV to benefit from stable supply and funding advantages, as well as other strengths associated with U.S. production.”Samsung SDI’s JV with Stellantis, StarPlus Energy, is set to launch its first production line ahead of schedule in December, supplying P6-based cells and modules. Kim said, “We plan to operate three additional lines in sequential order each quarter starting early 2025, aiming for an annual production capacity of 33GWh.”Regarding production tax credits (AMPC) under the U.S. Inflation Reduction Act (IRA), Samsung SDI expects significant benefits in the upcoming year.The company stated, “In Q4, initial production at the StarPlus Energy plant may not yield substantial tax credits, but with Stellantis’s aggressive EV strategy and new car launches, we expect to operate the SPE line at full capacity next year, resulting in meaningful AMPC gains. These funds will be used for JV operations and future facility investments.”Sohn noted that despite the European market’s 2% contraction year-over-year as of August, and reduced subsidies in key countries, demand is expected to recover next year due to strengthened regulations and expanded EV support policies across Europe, which should also boost Samsung’s sales.He emphasized, “The long-term growth of the EV market remains unchanged. Samsung SDI is actively pursuing technology development and order activities aligned with market needs for prismatic batteries, aiming to simultaneously secure mid- to long-term growth and profitability through high-quality orders.”Samsung SDI also expressed its intent to enhance product competitiveness in its ESS battery business to expand profitability.Sohn said, “Based on long-term partnerships with the top three U.S. power companies, we have already secured stable orders for supply into next year. The launch of the SBB 1.5, which improves energy density and safety for power solutions, has strengthened our product competitiveness, resulting in improved profitability. Q4 revenue growth is expected to exceed the 20% growth seen in Q3, with sustained profitability improvements.”As for its ESS lithium iron phosphate (LFP) battery production roadmap, he stated, “We recently completed verification of large-scale LFP cells and finalized product facilities and concepts. Last month, we began establishing the ‘mother line’ at our Ulsan plant, aiming for mass production and global project supply by 2026.”He added, “We are producing NCA-based SBB products in Ulsan and Xi’an, China, and plan to gradually expand LFP production capacity. Following initial mass production and verification at the domestic mother line, we are prioritizing U.S. entry as market demand continues to grow.”hyewon Park [email protected]

Samsung SDI has announced that it plans to continue its performance improvement in Q4, focusing on energy storage systems (ESS). With battery sales expected to face challenges due to inventory adjustments and slowing demand in the electric vehicle market, the company aims to strengthen the competitiveness of its ESS products, including the Samsung Battery Box (SBB). Nonetheless, given the long-term growth outlook for the EV market, Samsung SDI intends to expand orders through initiatives such as establishing additional sites in the U.

S. Michael Sohn, Vice President of Samsung SDI, stated in an earnings call on the 30th, “We expect to see performance improvement centered around ESS in Q4, with high growth in power SBB for the Americas and increased sales of power and UPS units for Europe.” He also noted, “In automotive batteries, sales of high-value products aligned with new car launches from key European customers are anticipated to increase.

However, the impact of customer inventory adjustments and slowing demand growth will limit the scope of improvement.” Samsung SDI confirmed plans to establish additional plants in the U.S.

, considering both ESS and automotive battery growth as part of its long-term strategy. Samsung SDI’s Head of Business Support, Kim Jong-seong, explained, “We are considering various options for entering additional locations in the U.S.

, including joint ventures (JVs) with OEMs or standalone factories, aligning with long-term strategies like ESS.” Kim also elaborated on the JV with General Motors (GM). He noted, “From 2027 to 2034, we plan to produce the premium P6 prismatic battery and supply it to GM, with an initial production capacity of 27GWh, which could expand to 36GWh through further discussions.

” He added, “We expect the JV to benefit from stable supply and funding advantages, as well as other strengths associated with U.S. production.

” Samsung SDI’s JV with Stellantis, StarPlus Energy, is set to launch its first production line ahead of schedule in December, supplying P6-based cells and modules. Kim said, “We plan to operate three additional lines in sequential order each quarter starting early 2025, aiming for an annual production capacity of 33GWh.” Regarding production tax credits (AMPC) under the U.

S. Inflation Reduction Act (IRA), Samsung SDI expects significant benefits in the upcoming year. The company stated, “In Q4, initial production at the StarPlus Energy plant may not yield substantial tax credits, but with Stellantis’s aggressive EV strategy and new car launches, we expect to operate the SPE line at full capacity next year, resulting in meaningful AMPC gains.

These funds will be used for JV operations and future facility investments.” Sohn noted that despite the European market’s 2% contraction year-over-year as of August, and reduced subsidies in key countries, demand is expected to recover next year due to strengthened regulations and expanded EV support policies across Europe, which should also boost Samsung’s sales. He emphasized, “The long-term growth of the EV market remains unchanged.

Samsung SDI is actively pursuing technology development and order activities aligned with market needs for prismatic batteries, aiming to simultaneously secure mid- to long-term growth and profitability through high-quality orders.” Samsung SDI also expressed its intent to enhance product competitiveness in its ESS battery business to expand profitability. Sohn said, “Based on long-term partnerships with the top three U.

S. power companies, we have already secured stable orders for supply into next year. The launch of the SBB 1.

5, which improves energy density and safety for power solutions, has strengthened our product competitiveness, resulting in improved profitability. Q4 revenue growth is expected to exceed the 20% growth seen in Q3, with sustained profitability improvements.” As for its ESS lithium iron phosphate (LFP) battery production roadmap, he stated, “We recently completed verification of large-scale LFP cells and finalized product facilities and concepts.

Last month, we began establishing the ‘mother line’ at our Ulsan plant, aiming for mass production and global project supply by 2026.” He added, “We are producing NCA-based SBB products in Ulsan and Xi’an, China, and plan to gradually expand LFP production capacity. Following initial mass production and verification at the domestic mother line, we are prioritizing U.

S. entry as market demand continues to grow.” hyewon Park sunone@chosunbiz.

com.