Samsung SDI reported an operating loss of ₩434.1 billion ($304 million) for the first quarter of 2025, marking a significant downturn from a profit of ₩249.1 billion a year earlier. Revenue plunged 34% to ₩3.18 trillion ($2.23 billion), as the company’s core battery segment faced headwinds from inventory adjustments by major customers and weak seasonal demand in the energy storage market.
The battery business was hit particularly hard, with revenue dropping 34.9% year-on-year to ₩2.98 trillion and posting an operating loss of ₩452.4 billion. Lower utilization rates and higher fixed costs squeezed profitability across product lines for electric vehicles and power tools.
Samsung SDI’s electronic materials division provided a small bright spot, recording an operating profit of ₩18.3 billion on revenue of ₩195.9 billion, helped by rising demand for OLED materials.
Looking ahead, Samsung SDI expects performance to “bottom out” in Q1 with gradual improvement in the coming months as customers complete inventory adjustments. However, the company flagged significant uncertainty from U.S. tariff policies as a persistent challenge, potentially hampering demand recovery.
Despite current difficulties, Samsung SDI continues expansion efforts, having commenced operations at its Stellantis joint venture in the U.S. and beginning construction of another facility with General Motors targeting 2027 production. The company has also diversified its portfolio by starting mass production of 46-series cylindrical batteries and signing an agreement with Hyundai Motor Group for robotics applications.
