Samsung SDI said Friday it posted a fourth-quarter deficit in 2024, its first quarterly loss in seven years, amid an electric vehicle slowdown largely driven by reduced consumer subsidies and increased interest rates.
In the fourth quarter, the company experienced a 28.8 percent drop in sales revenue, falling to 3.7 trillion won ($2.6 billion) from the previous year, and its first operating loss since 2017 of 256.7 billion won. For the full year, it posted 16.6 trillion won in revenue, marking a 22.6 percent decrease and a 363.6 billion won loss.
From October to December last year, the battery division saw a downturn due to a slump in the EV market. It recorded an operating loss of 268.3 billion won, a sharp reversal from the third quarter’s profit of 63.5 billion won. Revenue slightly fell 2.9 percent to 3.6 trillion won. Although the company’s EV battery plant saw a decline in operating rate, its energy storage system manufacturing facilities reached high production capacity with a surge in demand for artificial intelligence-powered data centers in the US.
For this year, Samsung SDI vowed to boost its EV battery business by developing lithium iron phosphate for entry-level vehicles, expanding US production through a joint venture with Stellantis. It also aims to achieve high capacity and complete the production technology for the next-generation all-solid-state batteries, while taking a conservative approach to investments.
“We have already created a distinctive platform for LFP batteries that sets us apart from our competitors,” said Park Jong-sun, executive vice president of the strategic marketing division for midsized and large batteries at Samsung SDI. “Leveraging on our prismatic form factor with advanced material technologies to enhance energy density and lifespan of LFPs for electric cars, we are in talks with clients to initiate mass production projects by 2027.”
By Byun Hye-jin (hyejin2@heraldcorp.com)
