Reversing Last Year's $1.2 Billion Loss

Samsung SDI, which recorded a loss of approximately 1.7 trillion won ($1.2 billion) last year, has declared this year as the "first year of earnings turnaround." President Choi Yoon-ho stated at the 56th regular shareholders' meeting held in Gangnam-gu, Seoul on the 18th, "We aim to return to profitability on a quarterly basis within the second half of the year," expressing his determination for a rebound.

Last year, Samsung SDI suffered significant losses as utilization rates plummeted due to slowing electric vehicle demand following weakened global eco-friendly policies and poor sales by major clients. Revenue decreased 20% to 13.27 trillion won from the previous year (16.59 trillion won), with operating losses reaching 1.72 trillion won.

Securing Mid-to-Long-Term Growth Momentum Through Order Diversification

President Choi emphasized that despite the challenging business environment, the Energy Storage System (ESS) business achieved record annual sales. Samsung SDI is diversifying orders beyond EV batteries into ESS, robotics, and Urban Air Mobility (UAM) to establish mid-to-long-term growth drivers.

Particularly, with the expansion of artificial intelligence (AI) data center investments, demand for power and uninterruptible power supply (UPS) batteries is increasing, and the company plans to strengthen its position as a non-Chinese prismatic battery manufacturer. Business-specific strategies are being refined, including preparation of lithium iron phosphate (LFP) and mid-nickel products, and development of ultra-high-power and ultra-lightweight small batteries.

Solid-State Battery 'Solid Stack' Targeting 2027 Mass Production

Regarding next-generation core technologies, President Choi stated, "We are pursuing mass production of solid-state batteries in 2027 to supply humanoids, electric vehicles, etc.," adding that the company will continue to discover technology patents to build an industry-leading portfolio. Sodium batteries are being prioritized for UPS applications, while lithium metal battery technology is also being secured proactively.

Samsung SDI plans to continuously discover patents for core battery technologies such as prismatic and solid-state batteries through strengthened "patent management." With the global battery market expected to grow at an average annual rate of 20% from this year onward, the company is pursuing a market leadership strategy through technological competitiveness.

Improving Financial Structure Through Samsung Display Stake Sale

Self-rescue measures to improve financial structure are also attracting attention. Samsung SDI officially announced in February the sale of its 15.2% stake in Samsung Display (book value approximately 11 trillion won). President Choi responded, "Nothing specific has been decided regarding the schedule, scale, or counterparty," adding that "it will be decided after fair review by the board of directors composed of outside directors."

The proceeds from the sale are expected to be used for solid-state battery line investments and expansion of U.S. and European plants. Regarding treasury stock cancellation, he drew a line saying, "There are no specific plans at present."

Last year, Samsung SDI announced a three-year suspension of dividends. President Choi promised, "Dividends will resume when business profitability improves and we get on a stable growth trajectory," adding "In the short term, we will focus on strengthening future growth drivers and do our utmost to enhance shareholder value."