Samsung SDI is showing strong performance in early trading, reflecting expectations for increased demand for energy storage systems (ESS) due to the expansion of artificial intelligence (AI) data centers. Investor sentiment is also recovering in the battery sector, which had been sluggish due to a slowdown in the electric vehicle market.
As of 10:40 a.m. on the Korea Exchange, Samsung SDI shares were trading at 590,000 won, up 30,000 won (5.36%) from the previous trading day. This marks the second consecutive day of gains, following a 0.71% increase the day before.
The rise in Samsung SDI's stock is attributed to growing interest in battery companies driven by the expansion of data centers. Daol Investment & Securities projected that annual installations of ESS in the U.S. will increase from 51 GWh this year to 70 GWh next year, and exceed 110 GWh by 2030. As data centers require stable, large-scale power supply, the demand for ESS installations is expected to rise alongside enhancements to the power grid.
Samsung SDI is also expanding its ESS production capacity, focusing on its Indiana plant to boost battery production for ESS. The company plans to begin mass production of cylindrical lithium iron phosphate (LFP) batteries for AI servers starting in June next year, marking the first application of LFP in cylindrical backup batteries within the domestic battery industry.
The outlook for Samsung SDI's performance is positive. Shinhan Investment Corp. estimates that the company's operating profit for the third quarter of this year will reach 263.8 billion won, significantly surpassing the market consensus of 165.4 billion won. Shinhan noted, "Samsung SDI's performance growth will be driven by the mass production of LFP batteries in the U.S., with a substantial portion of its ESS production capacity already secured through orders."
Meanwhile, other battery companies are also performing well. At the same time, LG Energy Solution (up 2.20%), L&F (up 5.12%), and EcoPro (up 1.02%) are also seeing gains.
As of 10:40 a.m. on the Korea Exchange, Samsung SDI shares were trading at 590,000 won, up 30,000 won (5.36%) from the previous trading day. This marks the second consecutive day of gains, following a 0.71% increase the day before.
The rise in Samsung SDI's stock is attributed to growing interest in battery companies driven by the expansion of data centers. Daol Investment & Securities projected that annual installations of ESS in the U.S. will increase from 51 GWh this year to 70 GWh next year, and exceed 110 GWh by 2030. As data centers require stable, large-scale power supply, the demand for ESS installations is expected to rise alongside enhancements to the power grid.
Samsung SDI is also expanding its ESS production capacity, focusing on its Indiana plant to boost battery production for ESS. The company plans to begin mass production of cylindrical lithium iron phosphate (LFP) batteries for AI servers starting in June next year, marking the first application of LFP in cylindrical backup batteries within the domestic battery industry.
The outlook for Samsung SDI's performance is positive. Shinhan Investment Corp. estimates that the company's operating profit for the third quarter of this year will reach 263.8 billion won, significantly surpassing the market consensus of 165.4 billion won. Shinhan noted, "Samsung SDI's performance growth will be driven by the mass production of LFP batteries in the U.S., with a substantial portion of its ESS production capacity already secured through orders."
Meanwhile, other battery companies are also performing well. At the same time, LG Energy Solution (up 2.20%), L&F (up 5.12%), and EcoPro (up 1.02%) are also seeing gains.
* This article has been translated by AI.
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