Following the shareholders’ meeting, Samsung SDI CEO Choi Yoon-ho told reporters that LFP batteries are one of the key platforms in the electric vehicle sector. According to him, Samsung SDI is attempting to develop LFP batteries in order to diversify its business and customers.
Although Chinese companies currently produce the majority of the world’s lithium iron phosphate batteries, Korean battery makers LG New Energy and SK On have been hesitant to develop them. LFP batteries have a lower energy density than nickel-based batteries, but they are also more stable and less expensive.
The South Korean battery manufacturer has previously stated that it intends to focus on high-end batteries in order to provide low-cost cobalt-free batteries instead of LFP. He stated that during a previous visit to Samsung SDI, Samsung Chairman Lee Jae-Yong emphasised the importance of technology and talent. This should be the motivation behind Samsung SDI’s decision to develop additional technology lines.
Meanwhile, the company is expected to finish building a solid-state battery production line. The production line, according to the report, will begin trial production this year, with commercial production set to begin in 2027. Furthermore, instead of Tesla, the company intends to supply 4680 batteries to BMW or Volvo.
In the fourth quarter of last year, Samsung SDI’s electronic materials business reported revenue of 624.3 billion won (currently about RMB 3.278 billion), a decrease of 11.9% from the previous year’s 708.7 billion.
In terms of operating profit, Samsung SDI’s operating profit for the fourth quarter of last year was 490.8 billion won (currently about RMB 2.699 billion), a year-on-year increase of 84.7% over the 265.7 billion won in the same period the previous year. The energy business’ operating profit was 359.1 billion won, up 198.8% year on year, while the electronic materials business’ operating profit was 131.7 billion won, down 9.5% year on year and slightly lower than the revenue decline.
In their earnings report, Samsung SDI stated that their revenue and operating profit in the fourth quarter of last year were both record highs. Samsung SDI’s revenue for the full year 2022 is 20.12 trillion won (currently about RMB 110.66 billion), up RMB 6.57 trillion from 13.55 trillion in 2021, a 48.5% increase year on year.
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