Samsung SDI Co. reported a steep decline in quarterly profit as cooling demand for electric vehicles in Europe and unfavorable currency rates hit its core battery business.
Operating profit fell 72% to 129.9 billion won ($2.8 billion) in the third quarter, while revenue dropped 30% to 3.94 trillion won. The battery unit, which accounts for about 93% of sales, saw operating profit plummet 85% from a year earlier.
The South Korean manufacturer faced headwinds from slower EV adoption in Europe, though its P6 batteries gained traction in the US market. The company’s energy storage systems showed growth following the launch of its enhanced SBB 1.5 product.
Looking ahead, Samsung SDI aims to offset market challenges through its joint ventures with General Motors Co. and Stellantis NV. The StarPlus Energy partnership with Stellantis will begin production in December at its first US plant.
The electronic materials division provided a bright spot, with operating profit jumping 24% year-on-year to 66.4 billion won, driven by OLED materials demand.
The company is betting on its new 46-series battery, set for production in early 2025, and expansion in the electric four-wheeler market to drive future growth.
