Seoul: Samsung SDI Co., a prominent battery manufacturer based in South Korea, announced a significant 63 percent decrease in its third-quarter net profit, attributed primarily to a decline in electric vehicle (EV) sales. The company’s net profit for the quarter ending in September fell to 230.4 billion won (approximately US$166.6 million), down from 622.4 billion won during the same period last year, as outlined in a regulatory filing by the company.
According to Yonhap News Agency, Samsung SDI attributed the decline in profit to the persistent “EV chasm,” which has led to reduced demand for car batteries, subsequently impacting the company’s quarterly financial results. The term “EV chasm” refers to the transitional phase before the widespread adoption of fully electric vehicles. Samsung SDI projected “limited growth” for the upcoming fourth quarter due to this ongoing market challenge.
In light of the weakening demand, Samsung SDI expressed its intention to broaden its product range to better compete wit
h global competitors in the evolving EV market. The company is actively working on developing lithium iron phosphate (LFP) batteries, known for their safety and cost-effectiveness, alongside higher-end solid-state batteries. Samsung SDI aims to commence mass production of these new battery types in 2026 and 2027, respectively.
Furthermore, the company’s operating profit saw a steep decline of 72 percent, dropping to 129.9 billion won in the third quarter from 465.2 billion won the previous year. Sales also experienced a downturn, decreasing by 29.8 percent to 3.93 trillion won from 5.6 trillion won.