[Edaily Reporter JAEMIN SONG ] SAMSUNG SDI CO.,LTD. has emerged from its loss-making period faster than expected, driven by its energy storage systems (ESS) and high-power batteries for artificial intelligence (AI) data centers. After defying market expectations of continued losses and returning to profitability for the first time in seven quarters, the company is now considering further capacity expansion as ESS orders from the U.S. are projected to exceed its current production capacity.

SAMSUNG SDI CO.,LTD. announced on the 30th that it recorded consolidated revenue of 3.7688 trillion won and an operating profit of 203.8 billion won in the second quarter of this year. Having emerged from operating losses of 397.8 billion won in the second quarter of last year and 155.6 billion won in the first quarter of this year, the company posted a quarterly profit for the first time in seven quarters since the third quarter of 2024.

The results also significantly exceeded market expectations. The consensus estimate for a second-quarter operating loss, compiled by financial information provider FnGuide Inc., was 27.3 billion won. The actual operating profit was 231.1 billion won higher than the forecast. While the market had expected SAMSUNG SDI CO.,LTD. to remain in the red through the second quarter before turning a profit in the third quarter, the recovery came earlier than anticipated.

The U.S. Advanced Manufacturing Production Credit (AMPC), reflected in the second-quarter operating profit, amounted to 107.7 billion won. Even excluding this, operating profit stood at 96.1 billion won, marking a profit. Increased sales of high-value-added products, higher capacity utilization rates, and tariff refunds all contributed to the improvement in profitability.

At the heart of this earnings rebound are the ESS and AI data center markets. Increased sales of uninterruptible power supplies (UPS), battery backup units (BBU), and high-power batteries for power tools offset the slowdown in demand in the U.S. electric vehicle market. Sales of batteries for electric vehicles in Europe also increased.

The battery division returned to profitability with revenue of 3.519 trillion won and an operating profit of 159.3 billion won. The electronic materials division recorded revenue of 249.8 billion won and an operating profit of 44.5 billion won, driven by increased sales of semiconductor materials and films for foldable smartphones.

SAMSUNG SDI CO.,LTD. will begin full-scale supply of prismatic lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in the U.S. in the second half of the year. During an earnings conference call held today, the company stated, “Our prismatic LFP production line for ESS in the U.S. is currently in the mass production quality verification phase,” adding, “We plan to begin mass production of cells in October as originally scheduled and start supplying customers with the SBB 2.0 solution by the end of the year.”

The company has also completed the establishment of a non-Chinese supply chain. It has secured the necessary volumes of LFP cathode material primarily from domestic and U.S. suppliers, and by promoting the localization of other key components, it has met U.S. non-PFE supply chain standards.

As orders from the U.S. are growing rapidly, the likelihood of additional capacity expansion has also increased. A SAMSUNG SDI CO.,LTD. official explained, “The orders we have secured so far are large enough to fill a significant portion of our production capacity through 2029,” adding, “If we factor in projects with a high probability of securing orders in the second half of the year, we expect demand to exceed production capacity starting in 2028.” The official further noted, “We are internally reviewing plans to secure additional production capacity.”

In the second half of the year, the company plans to expand production not only of energy storage systems (ESS) but also of small batteries. A SAMSUNG SDI CO.,LTD. official said, “For ESS, sales are expected to increase significantly in the second half, driven by growing demand for power systems and UPS in the U.S.,” and added, “For small batteries, we plan to utilize our available production capacity to the fullest to meet the growing sales of high-power products such as battery backup units (BBUs) and power tools.”

However, while the loss margin for EV batteries is expected to narrow due to mass production of new projects, the possibility of reduced volumes from existing projects remains a variable. With the recovery in EV demand proceeding slowly, the key question is whether ESS and small-sized batteries can continue to drive profitability improvements in the second half of the year.

Humanoid robots are the leading candidate for the first commercial application of all-solid-state batteries. SAMSUNG SDI CO.,LTD. stated, “We will supply samples for humanoid robots in the second half of this year and, following product validation with our customers, begin full-scale preparations for mass production,” adding, “After securing mass production capacity for humanoid robots in the second half of 2027, we plan to expand applications to electric vehicles and other sectors.”