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Samsung SDI profit plunges with EV growth still slowing

Published: 30 Oct. 2024, 17:50

People walk by Samsung SDI Co.' booth during the InterBattery 2021, the country's leading battery exhibition, at COEX in Seoul, South Korea, on June 9, 2021. [AP/YONHAP]

Samsung SDI, a major Korean battery maker, said Wednesday its third quarter net profit had plunged 63 percent from a year earlier due to a slowdown in electric vehicle sales.

Net profit for period fell to 230.4 billion won ($166.6 million) from the 622.4 billion won recorded during same period of last year, the company said in a regulatory filing.

“Lower demand for car batteries amid the EV 'chasm' continued to eat away at the quarterly bottom line,” Samsung SDI said in a statement.

The company expected “limited growth” in the fourth quarter due to the chasm, referring to the period before the widespread adoption of all-electric cars.

In response to sluggish demand, the company said it will diversify its product lineup to better compete with global rivals in the upcoming EV era.

On top of high-end lithium-ion batteries, Samsung SDI is developing lithium iron phosphate (LFP) and higher-end solid-state batteries at the same time with an aim for mass production in 2026 and 2027, respectively, it said.

An LFP battery is known for its enhanced safety features and low manufacturing costs despite low energy density and relatively short driving range compared with the lithium-ion and nickel cobalt manganese batteries adopted by Korean companies.

Operating profit also plummeted 72 percent to 129.9 billion won in the third quarter from 465.2 billion won a year ago. Sales fell 29.8 percent to 3.93 trillion won from 5.6 trillion won.

Yonhap