The two South Korean battery giants LG Energy Solution and Samsung SDI both announced third quarter financial results this week. LG reported a turnover of around €6 billion ($6.4 billion), up 11.6% from the previous quarter but 16.4% down year-on-year. Samsung SDI’s turnover reached €2.6 billion ($2.3 billion) for the quarter, down 30% from 2023 and 4% from Q2.
The profit generated by LG was €400 million ($450 million), up 130% from Q2, but down 39% from 2023. Excluding the US Inflation Reduction Act tax credit of more than €400 million ($466 million), the company would have recorded a quarterly operating loss of ₩17.7 billion ($17.4 million).
For Samsung SDI the operating profit fell 72% from the previous year to €100 million ($110 million). The decrease from Q2 was 46%.
Split into business areas, LG reported that the group successfully secured large-scale orders from top global automakers for its new form factors and chemistries, totalling 160GWh. The major supply agreements include a contract for 50GWh of cylindrical batteries to power EVs sold in North America.
For pouch-type NCM EV batteries, LG Energy Solution secured supply agreements totalling 109GWh for commercial vehicles sold in Europe. These agreements are also expected to contribute to improving the Poland facility’s production efficiency, once production starts after the second half of 2026.
“While we expect unprecedented shifts in external environments, we will be nimble in responding to these changes through our comprehensive business strategy,” said David Kim, CEO of LG Energy Solution.
Samsung SDI reported lower revenue from prismatic batteries due to slowing demand in the European EV market and the impact of foreign exchange rates. In contrast, sales of P6 prismatic batteries in the US increased, and both revenue and operating profit from ESS batteries grew significantly due to the launch of its Samsung Battery Box 1.5 with enhanced energy density and safety. Cylindrical battery sales declined due to the base effect of a one-time gain in the previous quarter and lower utilisation rates due to slowing demand for EVs.
Choi Yoon-ho, President of Samsung SDI, said: “Despite the challenging business conditions both internally and externally, we have laid the foundation for mid- to long-term growth centred on prismatic premium batteries.”
Photo: Samsung SDI.
