Samsung SDI Q1 net drops 38% on lower battery demand

Samsung SDI, a major Korean battery maker, said Tuesday its first-quarter net profit fell 38 percent from a year earlier due to decreased sales of battery products.

Net profit for the three months ended in March plunged to 286.69 billion won ($208 million) from 464.51 billion won during the same period of last year, the company said in a statement.

"Decreased sales in the energy storage systems and small battery business weighed on the quarterly bottom line. But the car battery business made a profit despite slowing sales for electric vehicles," a company spokesperson said.

In the second quarter, the company expected increased sales of the P5, and P6 batteries for premium vehicles will prop up the quarterly results.

Operating profit declined 29 percent to 267.38 billion won in the first quarter from 375.38 billion won a year ago. Sales were down 4.2 percent to 5.13 trillion won from 5.35 trillion won.

Despite concerns about slowing demand for EVs, Samsung SDI plans to maintain factory utilization rates this year and proceed with the planned production of next-generation battery products.

The company aims to mass-produce all-solid-state batteries (ASBs) in 2027 to meet demands in the upcoming era of EVs.

The pilot line for ASBs with the industry-highest energy density of 900 watt-hours per liter was set up in Samsung SDI's R&D center in Suwon, just south of Seoul, last year and is currently producing proto samples.

An ASB is a next-generation battery solution with a filling of solid electrolyte that helps reduce fire risks and enhance driving range in EVs. (Yonhap)