South Korean battery maker, Samsung SDI (Samsung’s arm), revealed that the company posted a record profit in 2022. Samsung SDI’s net profit increased by 63.1%, registering KRW 2.03 trillion (approx $1.62 billion) in the same period. These staggering profits were made possible by strong EV battery demand and Energy Storage Systems (ESS).
Samsung SDI highlighted in its regulatory filing (via Yonhap News Agency) that its operating income reached KRW 1.8 trillion (approx. $1.46 billion) in 2022. This is 69.4% more than 2021’s KRW 1.06 trillion (approx. $87 million). The annual sales also reached a record high of KRW 20.12 trillion (approx. $16.37 billion), a 48.5% jump from the numbers logged in 2021.
These numbers are because of the flagship premium Gen.5 EV battery cell and the increased revenue from ESS, which was supplied to larger power grid projects. Samsung SDI’s operating profit reached KRW 490.8 billion (approx. $399 million) in Q4 of 2022, up by 84.7% from a year earlier.
In the energy category, which includes ESS products, Samsung registered KRW 5.34 trillion in sales during the Q4 of 2022. This was up by 71.9% from the previous year. In the future, Samsung SDI has projected positive numbers for 2023, forecasting 39% annual growth to $159 billion. The first quarter of 2023 is also expected to book strong growth, as it will be driven by strong demand for the Gen. 5 from its automotive clients.