Samsung SDI posted record annual sales in 2023, but its operating profit fell about 10 percent on-year, with the South Korean battery manufacturer reporting annual sales of 22.7 trillion won ($17.1 billion) and operating profit of 1.63 trillion won last year on Tuesday. Revenue was up 12.8 percent Year-on-year, while operating profit was down 9.7 percent.

The fourth quarter of 2023 saw a more noticeable decline, with sales dropping by 6.7 percent to 5.56 trillion won and operating profit plummeting by 36.5 percent to 311.8 billion won. The decrease in profit was particularly pronounced in the battery and electronic materials divisions, which saw declines of 37 percent and 35 percent respectively.

The decrease in profitability was attributed to a weakened demand for electric vehicles and a fall in lithium prices, impacting product pricing. A downturn in demand for polarizing film also contributed to the performance.

In a conference call on the same day, Samsung SDI revealed that it had shipped its solid-state battery prototypes to clients in the fourth quarter of 2023.

Park Jong-sun, head of Strategic Marketing at Samsung SDI’s midsized and large battery division, said that the company will be able to work on upgrading battery performance earlier based on customer feedback.

Park also highlighted the challenges faced by the solid-state battery team, emphasizing the need to secure key materials for mass production and the development of plate technology for large-capacity implementation.

Despite the overall decline in the industry and company profits, Samsung SDI introduced a new battery product, the P6, which features a 91 percent nickel composition and incorporates a proprietary silicon material in the anode, resulting in a 10 percent higher energy density compared to the previous P5 model. Mass production of the P6 is set to commence this month, with plans to cater to customers in North America and Europe.

Park expressed optimism about the P6, saying, “From the second quarter, meaningful sales contributions are expected, and it is projected to account for a double-digit share within the annual revenue of prismatic batteries.”

By Jung You-jung and Minu Kim

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