Samsung SDI Is Developing LFP Batteries And New Cylindrical
1. Samsung SDI is developing lithium iron phosphate batteries
Most of the world’s lithium iron phosphate batteries are currently produced by Chinese companies, but South Korean battery makers LG New Energy and SK On have been slow to develop them. In terms of performance, the energy density of LFP batteries is lower than that of nickel-based batteries, but they are relatively more stable and cheaper.
Samsung SDI CEO Choi Yoon-ho told reporters after the shareholders meeting that LFP batteries are one of the important platforms in the electric vehicle field. Samsung SDI is working hard to develop LFP batteries in order to diversify its business and customers, he said.
The South Korean battery maker has said in the past that it plans to focus on high-end batteries, aiming to offer cheaper batteries in a cobalt-free form rather than LFP. He said Samsung Chairman Lee Jae-yong had previously emphasized the importance of technology and talent during his visit to Samsung SDI. This should be the reason why Samsung SDI decided to develop more technical routes.
At the same time, Samsung SDI is also expected to complete the construction of a solid-state battery production line. According to reports, the production line will start trial production this year and plans to start commercial production in 2027. In addition, Samsung SDI also plans to supply 4680 batteries to BMW or Volvo instead of Tesla.
2. Samsung SDI Revenue
Samsung SDI’s electronic materials business recorded revenue of 624.3 billion won (approximately 3.278 billion yuan) in the fourth quarter of last year, which was lower than the 708.7 billion won in the same period of the previous year, down 11.9% from the previous quarter.
In terms of operating profit, the financial report shows that Samsung SDI’s operating profit in the fourth quarter of last year was 490.8 billion won (about 2.699 billion yuan), much higher than the 265.7 billion won in the same period last year, a year-on-year increase of 84.7%. Among them, the operating profit of the energy business was 359.1 billion won, a year-on-year increase of 198.8%; the operating profit of the electronic materials business was 131.7 billion won, a year-on-year decrease of 9.5%, slightly lower than the decline in revenue.
Samsung SDI disclosed in its financial report that their revenue and operating profit in the fourth quarter of last year both hit new highs. In the full year of 2022, Samsung SDI’s revenue will be 20.12 trillion won (currently about 110.66 billion yuan), an increase of 6.57 trillion from 13.55 trillion in 2021, a year-on-year increase of 48.5%.
As in the fourth quarter, Samsung SDI’s annual revenue increased significantly, which was also due to the increase in revenue from energy businesses such as electric vehicle batteries. This business’s annual revenue was 17.57 trillion won, an increase of 6.62 trillion won. An increase of 60.4%. The annual revenue of the electronic materials business was 2.56 trillion won, which was also lower than the previous year’s 2.61 trillion won, a year-on-year decrease of 1.9%.
In terms of profit, the financial report shows that the annual operating profit was 1.81 trillion won (currently about 9.955 billion yuan), which was 1.07 trillion last year, a year-on-year increase of 69.4%. The energy business contributed 1.25 trillion won, a year-on-year increase of 133.2% .
Last year’s net profit was 2.04 trillion won (currently about 11.22 billion yuan), a substantial increase from 1.25 trillion in 2021, a year-on-year increase of 63.1%.
It is worth noting that Samsung SDI disclosed in its financial report that last year’s revenue of 20.12 trillion won was the first time their annual revenue exceeded 20 trillion won.