Samsung SDI Co. rebounded in the second quarter after deficits in the previous six months following the debacle of fire-prone battery of Samsung Electronics’ Galaxy Note7 that led to the phone’s discontinuation and hit hard on the battery supplier’s reputation and bottom line.

Lee Won-sik from Hana Financial Investment estimated Samsung SDI would have recorded 3 billion won ($2.6 million) in operating profit on sales of 1.5 trillion won in the second quarter ended June 30. Growth would accelerate from the third quarter.

Samsung SDI Chief Executive Jun Young-hyun at an event celebrating the 47th anniversary of the battery maker’s foundation on June 3 was buoyant on the corporate outlook due to increasing demand for rechargeable batteries in the era of carbon-free vehicles and electronics and fourth industrial revolution.

Rebound in the smartphone battery division came with brisk sales of Galaxy S8 series released in April.

Its lithium-ion cylindrical batteries business gained impetus from order from Tesla Motors.

Its vehicle battery cell factories in Korea, China, and Malaysia are in full swing to meet the U.S. company’s demand.

Energy storage system (ESS) business also has been picking up. The global ESS market is expected to surge to 14,814 megawatt hour (MWh) in 2020 from 2,271 MWh in 2016. ESS is a system that allows excess electricity stored for later use, and Samsung SDI leads the global ESS market with 18 percent share as of 2015.

The electronic material business that the company took over from its defunct sister Cheil Industries Inc. in 2014 has been adding modest profits due to boon in semiconductor and display market.

As of 11:45 a.m. on Monday, shares of Samsung SDI stood at 168,500 won, down 3,000 won or 1.75 percent from the previous session.

By Kim Dong-eun

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