Samsung SDI said its EV battery business revenue was up 40% in 2023 while operating profit climbed 93%.
Group revenue was up 13% to ₩22.7 trillion ($17 billion), the highest yet, while operating profit dipped 10% to ₩1.63 trillion ($1.22 billion).
The company said its Automotive & ESS Battery Business plans to expand sales of a new product in the first quarter of 2024. The start of full production of P6, a high-capacity premium battery product means the mid-to-large sized lithium-ion battery division is aiming to expand sales and improve profitability.
The business aims to increase sales of its Samsung Battery Box ESS.
It said the EV battery market is projected to reach $185 billion in value this year, up 18% from 2023.
There is a temporarily muted outlook due to persisting high interest rates and global recession, but it sees the market growth recovering gradually from the second half on the back of lower interest rates.
The US IRA and EU’s 2025 CO2 regulations will also help boost demand in the mid-to-long term, it added.
The South Korean company plans to boost revenue and profitability with more sales of high-value products such as P5 and P6 prismatic batteries while preparing to start production in the US.
It expects the ESS market to hit a value of $26 billion, up 18% from 2023. Demand for ESS is booming in Korea and South America due to strong policy pushes.
Samsung SDI is preparing an LFP product to accommodate market demand for affordable batteries, it said.
The mobility market is expected to receive a boost from increasing OEM adoption of cylindrical batteries in EVs and e-scooter demand in south-east and west Asia.
President and CEO of Samsung SDI Yoon-ho Choi, said: “Although 2023 was marred by global economic recession, Samsung SDI came out of it with meaningful results that include revenue growth and profitability improvement in the EV battery business, our key focus area, as well as on-track preparations for sustainable growth.”
He said Samsung SDI will strive for profitable and qualitative growth this year.
