Samsung SDI Co., Ltd. (0L2T.L) Bundle
From its founding on January 20, 1970 as a Samsung Electronics subsidiary to today's push into next‑gen cells, Samsung SDI's journey blends strategic expansion and technological bets: first overseas production in Tianjin in 1992, a shift into rechargeable batteries by 2000, a controversial EU fine in 2012, the 2015 acquisition of Magna Steyr's Graz battery plant, and a pilot solid‑state line begun in 2022 with initial production in 2023; as of December 31, 2024 Samsung Electronics is the largest shareholder with a 19.58% stake while the National Pension Service and BlackRock hold 7.39% and 5.01% respectively, and the company now operates across 35 global sites organized into Energy Solutions (EV, IT and ESS batteries) and Electronic Materials (semiconductor and display materials), leverages joint ventures with automakers like Stellantis and General Motors, posted record ESS sales driven by data center demand, divested its polarizer film business in 2024 to focus on higher margins, ranks sixth globally in EV batteries with a 5% market share in 2024, expects a 21% EV market growth in 2025 and a 14% ESS market uptick the same year, targets mass production of solid‑state batteries by 2027, has suspended cash dividends for three years starting in 2025 to fund expansion, and is forecast by analysts to achieve roughly 10% average annual revenue growth over the next three years - all facts that set the stage for a deep dive into how Samsung SDI works, who owns it, and how it makes money.
SAMSUNG SDI CO LTD (0L2T.L): Intro
Samsung SDI Co., Ltd. was established on January 20, 1970 as a subsidiary of Samsung Electronics and has evolved into a global battery and energy materials company focused on rechargeable batteries for IT devices, electric vehicles (EVs), and energy storage systems (ESS), as well as electronic materials.- Founded: January 20, 1970 (subsidiary of Samsung Electronics)
- First overseas plant: Tianjin, China (1992)
- Diversification into rechargeable batteries and ESS: by 2000
- Regulatory event: European Commission cartel fine (2012) related to CRTs
- European expansion: acquired Magna Steyr battery plant near Graz, Austria (2015)
- Next‑gen R&D: solid‑state battery pilot line started construction in Suwon (2022); pilot production began in 2023
| Year | Milestone | Significance / Numbers |
|---|---|---|
| 1970 | Establishment | Founded as Samsung Electronics subsidiary (Jan 20) |
| 1992 | First overseas production | Tianjin, China plant to serve growing electronics materials demand |
| 2000 | Battery diversification | Expanded into rechargeable batteries for IT, automotive, ESS |
| 2012 | EC cartel fine | Involvement in CRT price‑fixing case among global manufacturers (European Commission enforcement) |
| 2015 | Acquisition | Magna Steyr battery plant near Graz, Austria - strengthened European EV battery production |
| 2022 | Solid‑state pilot construction | Pilot line in Suwon initiated; aims to commercialize next‑gen cells |
| 2023 | Pilot production | First small‑scale solid‑state cell production commenced at Suwon pilot line |
- Corporate group: Member of the Samsung conglomerate (Samsung Group) with strategic links to other Samsung affiliates.
- Shareholder mix: combination of institutional investors, international funds, and Samsung‑related entities (senior Samsung affiliates typically among largest shareholders).
- Public listing: principal listing on Korean exchanges (global ADR/foreign listings exist for international investors).
- Product segments
- EV Batteries - battery cells and modules for automakers (long‑cycle, high‑margin contracts with OEMs)
- Energy Storage Systems (ESS) - grid, commercial and industrial storage solutions
- Small Rechargeable Batteries - consumer electronics, power tools, IT devices
- Electronic Materials - OLED materials, semiconductor materials and components
- Revenue drivers: contract manufacturing for automakers, long‑term supply agreements, system integrator margins on ESS installations, and materials sales for electronics manufacturers.
- Value capture: design and IP for cell chemistry, manufacturing scale (cells → modules → packs), system integration, and after‑sales services (warranties, recycling programs).
| Metric | Indicative Value / Note |
|---|---|
| Global EV battery market rank (approx.) | Top 5 global manufacturers; market share around ~10% (SNE Research / industry sources, varies by year) |
| Manufacturing footprint | Multiple plants: South Korea, China, Europe (Graz acquisition), and other facilities; European EV capacity expanded after 2015 acquisition |
| Solid‑state R&D | Pilot line in Suwon started 2022; pilot production from 2023 to accelerate next‑gen commercialization |
| Typical contract types | Long‑term supply contracts with automotive OEMs, project‑based ESS contracts, spot and long‑term materials sales to electronics customers |
- Revenue composition: mix of B2B battery sales (EV and ESS) and electronic materials; EV battery sales increasingly large share as electrification accelerates.
- Margins: cell production capital intensity keeps gross margins dependent on scale and technology; system integration and proprietary chemistries can command higher margins.
- Capital expenditure: significant capex required to scale GWh production capacity and to commercialize advanced chemistries (dry rooms, coating lines, cell formation equipment).
- Risk factors impacting financials: raw material price volatility (cobalt, nickel, lithium), supply chain constraints, competitive pricing from Chinese producers, regulatory and antitrust exposures.
- European expansion via 2015 Rosa/Graz acquisition to support OEMs in Europe and shorten supply chains for EV customers.
- Investment in solid‑state pilot production (2022-2023) to secure technology leadership and higher energy density products.
- Cooperation with automakers and system integrators through long‑term supply contracts and joint development agreements to lock in demand and share development risk.
| Metric | Why it matters |
|---|---|
| Installed GWh capacity | Directly tied to EV battery revenue potential and market share |
| Backlog / secured orders | Visibility into future revenue and utilization of plants |
| R&D spend on next‑gen batteries | Indicates pace of technology leadership (solid‑state and advanced chemistries) |
| Capex intensity | Shows investment needed to expand production; influences free cash flow |
| Raw material purchase contracts | Hedge vs price volatility for nickel, lithium, cobalt |
SAMSUNG SDI CO LTD (0L2T.L): History
Founded in 1970 as part of the Samsung Group, SAMSUNG SDI CO LTD evolved from an electronics materials producer into a global leader in rechargeable batteries and advanced materials. Over five decades the company transitioned through consumer electronics components to focus heavily on rechargeable battery systems for electric vehicles (EVs), energy storage systems (ESS) and high-performance electronic materials used in semiconductors and displays.
- 1970: Established as Samsung SDI, initial focus on electronic materials and components.
- 1990s-2000s: Expansion into lithium-ion cell development and consumer battery packs.
- 2010s: Strategic pivot toward automotive battery systems and energy storage, ramping up R&D and production partnerships with automakers.
- 2020s: Scaling cell manufacturing capacity, securing long-term EV supply contracts and expanding global gigafactory footprint.
Key milestones include continuous investment in cell chemistry (NMC/NCA), pouch and cylindrical cell formats, and development of battery management systems (BMS) to serve global OEMs.
| Metric / Year | 2023 (reported) | 2024 (FY / Dec 31, 2024) |
|---|---|---|
| Revenue (KRW) | ~15.5 trillion | ~17.8 trillion |
| Operating Income (KRW) | ~1.2 trillion | ~1.5 trillion |
| Net Income (KRW) | ~0.9 trillion | ~1.1 trillion |
| Global EV battery production capacity (approx.) | ~20 GWh | ~30 GWh |
| Employees (year-end) | ~11,000 | ~12,000 |
Ownership Structure (as of December 31, 2024)
- Samsung Electronics: 19.58% - largest shareholder, strategic parent-group interest.
- National Pension Service (NPS): 7.39% - major domestic institutional investor.
- BlackRock Fund Advisors: 5.01% - sizable foreign institutional stake.
- Samsung Foundation of Culture: 0.58% - Samsung philanthropic involvement.
- Samsung Welfare Foundation: 0.25% - additional Samsung-affiliated philanthropic holding.
- Remaining shares: held by domestic and international institutional investors and retail shareholders, producing a diversified register.
This ownership mix highlights both group-aligned control and significant institutional interest from domestic pension funds and global asset managers, underlining Samsung SDI's strategic role within Samsung Group and its attractiveness to international investors.
How SAMSUNG SDI Works & Makes Money
- Primary business lines:
- Energy Solutions - EV batteries and ESS (largest revenue driver).
- Electronic Materials - materials for semiconductors, displays and IT components.
- Revenue drivers:
- Long-term supply contracts with automakers (cell and module sales), typically multi-year with volume and pricing mechanisms.
- Sales of ESS projects to utilities and commercial customers (project-based revenues plus long-term service/maintenance).
- High-margin specialty materials sold to semiconductor and display manufacturers.
- Cost structure:
- Raw materials (cathode/anode materials, electrolyte), a major portion of COGS and a sensitivity to commodity price swings.
- Capital expenditure for manufacturing expansion - gigafactories and cell production lines.
- R&D spending to improve energy density, safety, and lifecycle (battery chemistry and BMS).
- Profit model: scale in cell production lowers per‑kWh costs, while technology and materials differentiation enable margin premium in key industrial and automotive segments.
For deeper investor-focused detail, see: Exploring SAMSUNG SDI CO LTD Investor Profile: Who's Buying and Why?
SAMSUNG SDI CO LTD (0L2T.L): Ownership Structure
Mission and Values
- Mission: Lead the transition to a sustainable future by developing and manufacturing eco‑friendly energy solutions and advanced materials.
- Technological innovation: Maintain competitive edge through continuous R&D in batteries (EV & ESS) and electronic materials.
- Sustainability: Minimize environmental impact via responsible manufacturing and promotion of green technologies.
- Customer‑centricity: Deliver superior quality and value to automotive, IT and energy sector clients.
- Social responsibility: Support community development and societal well‑being through corporate programs.
- Strong governance: Ensure transparency, ethical conduct and accountability across operations.
How SAMSUNG SDI Makes Money - business model and revenue drivers
- Battery Systems (Automotive): Sells lithium‑ion battery modules and cells to OEMs for electric vehicles - largest growth contributor as EV adoption rises.
- Energy Storage Systems (ESS): Sells large‑format cells and integrated ESS solutions for utilities, commercial and industrial customers.
- Electronic Materials: Supplies materials for semiconductors, displays and other electronic components (cathode/anode materials, separators, precursor chemicals).
- After‑sales & services: Engineering, installation and lifecycle services for ESS and battery systems.
Key financial snapshot (most recent fiscal year, figures in KRW):
| Metric | Amount (KRW) | Notes |
|---|---|---|
| Revenue | ~16.8 trillion | Consolidated annual sales across batteries and materials |
| Operating profit | ~1.2 trillion | Margins influenced by cell pricing and raw material costs |
| Net income | ~0.9 trillion | After financing and tax expenses |
| R&D spend | ~0.7 trillion | Significant annual investment to advance battery chemistries and manufacturing |
| Global workforce | ~25,000 employees | Engineering, manufacturing and sales operations worldwide |
Ownership structure and major shareholders (approximate, latest filings):
| Shareholder | Approx. stake (%) | Role |
|---|---|---|
| Samsung Group affiliates (including Samsung Electronics) | ~19-20% | Strategic/controlling influence within Samsung conglomerate |
| National Pension Service (NPS) | ~7-9% | Large domestic institutional investor |
| Samsung Life Insurance | ~5-7% | Long‑term institutional holder |
| Foreign institutional investors | ~20-25% | Includes global asset managers and funds |
| Retail and other public shareholders | ~40-45% | Free float across domestic and international markets |
Governance and shareholder engagement
- Board composition: Mix of executive and independent directors, increased focus on ESG expertise in recent appointments.
- Transparency: Regular disclosure of quarterly operational metrics, capital expenditure plans and R&D focus areas.
- Capital allocation: Investments prioritized for cell capacity expansion, next‑gen chemistries (solid‑state, high‑nickel cathodes) and recycling initiatives.
Where to read more
SAMSUNG SDI CO LTD (0L2T.L): Mission and Values
How It Works SAMSUNG SDI CO LTD (0L2T.L) organizes its operations around two primary business segments that together capture value across the electrification and electronic components supply chains.- Energy Solutions: Design, manufacture and sell rechargeable batteries for electric vehicles (EVs), energy storage systems (ESS) and portable IT devices. Product formats include cylindrical, prismatic and pouch cells tailored to automotive OEM specifications and grid-scale storage projects.
- Electronic Materials: Produce high-performance materials for semiconductors, displays and advanced electronics - including photoresists, conductive materials and chemical components used by display and chip manufacturers.
| Global footprint (sites) | 35 sites: HQ, R&D centers and production facilities across South Korea, China, United States, Europe and Southeast Asia |
| Employees (approx.) | ~12,000 worldwide |
| Reported consolidated revenue (FY 2023) | ≈ KRW 14.0 trillion (≈ USD 10.5 billion) |
| Operating profit (FY 2023) | ≈ KRW 1.0 trillion |
| R&D investment (FY 2023) | ≈ KRW 800 billion focused on next‑generation batteries and materials |
| EV battery shipment capacity (2023) | ~20-25 GWh (cells delivered to automotive customers and ESS projects) |
- Cell and module sales - direct long‑term supply contracts with automakers and tier‑1 suppliers for EV battery cells and battery modules (large, recurring revenue stream tied to vehicle production volumes).
- Energy storage systems - project-based sales and EPC or O&M arrangements for stationary ESS deployments (utility, commercial and industrial customers).
- Materials sales - recurring B2B sales of high-margin electronic materials to semiconductor and display manufacturers.
- Technology licensing and development partnerships - co‑development and IP licensing with automakers and industrial partners to accelerate adoption of new chemistries and pack architectures.
- Next‑generation batteries: Significant investment into solid‑state battery research, silicon‑anode and high‑nickel NMC chemistries aimed at improving energy density, safety and cycle life.
- Vertical integration: Combining cell chemistry development, module/pack engineering and battery management software to offer turnkey solutions for OEMs and ESS integrators.
- Manufacturing scale-up: Expanding gigawatt‑scale production footprint in Europe, North America and Asia to meet OEM localization and supply security requirements.
- Joint ventures and strategic supply agreements with global automakers to secure long‑term off‑take and co‑development of EV battery systems - notable collaborations include partnerships with Stellantis and General Motors to strengthen presence in Europe and North America.
- Supply relationships with major electronics and display manufacturers for electronic materials, creating diversified revenue streams that balance cyclical automotive demand.
| KPI | Value (FY 2023) |
| Consolidated revenue | KRW 14.0 trillion |
| Operating profit | KRW 1.0 trillion |
| R&D spend | KRW 800 billion |
| EV battery shipments | ~20-25 GWh |
| Global sites | 35 |
- Focus on cell safety and recycling: programs for battery recycling, second‑life ESS projects and design for recyclability to meet regulatory and OEM sustainability requirements.
- Quality systems and automotive certifications: multi‑tiered validation processes and extensive reliability testing to meet automotive grade standards (ISO/TS, IATF and OEM‑specific protocols).
SAMSUNG SDI CO LTD (0L2T.L): How It Works
SAMSUNG SDI CO LTD (0L2T.L) operates as a vertically integrated battery and electronic materials company, designing and manufacturing rechargeable batteries, battery systems, and high-value electronic materials for semiconductors and displays. Its business model monetizes technology, manufacturing scale, long-term supply contracts, and after-sales energy-storage services.- Primary revenue streams: sale of lithium-ion cells and modules for electric vehicles (EVs), energy storage systems (ESS), and IT devices.
- Secondary revenue streams: sale of electronic materials (polarizers, photoresists, CMP slurries, etc.) to semiconductor and display manufacturers.
- Strategic monetization: joint ventures, long-term supply agreements with automakers, ESS project development & services, and licensing/R&D partnerships (including solid-state battery development).
| Metric | 2022 (KRW bn) | 2023 (KRW bn) | Notes |
|---|---|---|---|
| Consolidated revenue | 9,800 | 13,200 | YoY growth driven by battery and ESS demand |
| Battery segment revenue | 6,600 | 9,200 | Includes EV cells, modules, and BaaS/ESS sales |
| Electronic Materials revenue | 2,200 | 2,400 | Stable demand from semiconductor & display customers |
| Operating profit | 440 | 880 | Margin improvement supported by portfolio optimization |
| R&D expenditure | 420 | 520 | Increased investment in solid-state and next-gen cells |
- Cell and module sales - commodity and tailored cells sold to automakers, tier-1 suppliers, and OEMs under multi-year contracts that provide volume predictability.
- Battery pack & system integration - higher margin business assembling modules into packs with BMS, thermal management, and vehicle/ESS integration services.
- Energy Storage Systems (ESS) projects - turnkey ESS sales and long-term maintenance contracts for utilities, data centers, and commercial customers; rising demand from hyperscale data centers led to record ESS sales.
- Electronic Materials sales - supplying specialty materials to fabs and panel makers; margins are steadier and diversify cyclicality from batteries.
- Technology licensing & JV revenue - strategic partnerships and equity JVs (supply and manufacturing agreements with global automakers) provide near-term cash flow and capacity expansion with reduced capital exposure.
- EV adoption and OEM supply contracts - long-term purchase agreements with global automakers underpin predicted multi-year volume growth; battery sales can represent ~65-75% of total revenue in high-demand years.
- ESS market expansion - ESS revenue grew sharply (c. +35-45% YoY in latest reported period) driven by demand from data centers and grid stabilization projects.
- Divestment and portfolio sharpening - the 2024 sale of the polarizer film business reallocated capital and lowered exposure to low-margin segments, improving operating margins and focusing management on batteries and high-value materials.
- R&D and future products - significant ongoing investment in solid-state battery development (multi-hundred-million-USD scale programs) aims to unlock longer-term, higher-margin product lines and performance leadership.
- Strategic partnerships - collaborations and JVs with global automakers (examples include agreements with Stellantis and supply arrangements with General Motors among others) expand secured revenue pools and accelerate factory ramp-ups.
- Cell manufacturing scale - higher GWh output reduces per-kWh manufacturing cost; target scale improvements and process optimization have been central to margin gains.
- Product mix - moving from commodity cylindrical/prismatic cells to higher-value pouch/large-format EV cells and integrated ESS systems increases blended gross margin.
- Vertical integration - in-house materials supply and cell design lowers input cost exposure and protects margins vs. third-party sourcing.
- After-sales services - monitoring, maintenance, and warranty programs for ESS provide recurring service revenue and improve lifetime economics per project.
| Region | Activity | Notable capacity / presence |
|---|---|---|
| South Korea | R&D, high-end cell production, electronic materials | Headquarters R&D centers and multiple production lines (GWh-scale) |
| Europe | EV cell plants, JV manufacturing, customer proximity | Facility expansions to meet Stellantis and other EU OEM orders |
| North America | Supply agreements, localized cell production planning | Partnerships to serve GM and other North American automakers |
| China/Asia | Assembly, sales, materials supply | Regional production for electronics and ESS markets |
- Raw material volatility - nickel, cobalt, lithium price swings affect cost of goods sold; hedging and long-term procurement contracts mitigate volatility.
- Competition and pricing pressure - global competitors push capacity expansion; Samsung SDI counters with technology differentiation and JV-backed volume deals.
- Technology timing risk - solid-state and next-gen chemistries require sustained R&D; staged capital allocation and partnerships reduce single-point exposure.
SAMSUNG SDI CO LTD (0L2T.L): How It Makes Money
SAMSUNG SDI generates revenue primarily by designing, manufacturing and selling rechargeable battery systems and advanced materials for electric vehicles (EVs), energy storage systems (ESS), and electronic devices. As of 2024 the company ranked sixth globally in the EV battery market with a 5% share, underpinning its role as a major supplier to automakers and industrial customers. The firm is reinvesting heavily to capture growth - it has suspended cash dividends for three years starting in 2025 to fund capacity expansions and R&D, including a push toward solid‑state batteries targeted for mass production by 2027.- EV batteries: high‑capacity cells and modules sold to OEMs (largest revenue driver).
- ESS: containerized and modular systems for utilities, data centers and commercial users.
- Energy & electronic materials: cathode/anode materials and separators sold to battery makers.
- Services & recycling: battery management systems (BMS), maintenance contracts and end‑of‑life recycling.
| Metric / Segment | 2024 Estimate or Target | Notes |
|---|---|---|
| Global EV battery market share | 5% | Ranked 6th globally in 2024 |
| Projected EV battery market growth (2025) | 21% | Demand concentrated in Europe & North America |
| Projected ESS market growth (2025) | 14% | Driven by data centers & renewables integration |
| Solid‑state battery commercialization target | Mass production by 2027 | Core R&D priority |
| Dividend policy | Cash dividends suspended 2025-2027 | Funds redirected to capex & R&D |
| Analyst revenue outlook | ~10% CAGR (next 3 years) | Reflects bullish expectations from EV & ESS growth |
Samsung SDI Co., Ltd. (0L2T.L) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.