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Samsung SDI CEO Forecasts Profit Turnaround Amid Battery Sector Challenges and AI Push
Samsung SDI Co., Ltd. announced on July 1 that it expects to return to profitability this year, after a year of consolidating its business fundamentals. The statement came during the company’s 56th‑anniversary ceremony at its Giheung headquarters in Gyeonggi Province, where CEO Choi Joo‑sun told employees and guests that the battery maker had laid the groundwork for a renewed growth trajectory.
Choi said the company had adopted a “pessimistic optimism” mindset, steadily strengthening its core operations in the face of a slowing global electric‑vehicle (EV) market and intensifying competition. He reiterated a promise made earlier in the year that earnings would turn positive, noting that the company’s recent achievements in energy‑storage systems, supply agreements with premium automakers, and the revitalization of its cylindrical‑cell business would support that outlook.
The CEO highlighted several specific milestones. Samsung SDI secured a series of energy‑storage‑system (ESS) projects, signed supply contracts with global premium automakers, and restored competitiveness in its cylindrical‑battery line. The company also expanded into high‑value materials, including advanced packaging semiconductor materials and high‑definition, high‑efficiency display materials. Choi emphasized that sustained execution would be essential to translate these gains into long‑term growth.
Beyond battery production, Choi urged the workforce to embrace artificial intelligence (AI) more actively. He described AI as already embedded in many aspects of daily life and as the next major driver of corporate competitiveness. According to the CEO, Samsung SDI must transform into a true AI‑native company to secure a leading position in future markets. He referred to agentic AI as a paradigm shift that could fundamentally reshape how companies operate and develop business models.
The announcement comes at a time when Samsung SDI is navigating a challenging environment. Industry analysts note that global EV demand is expected to remain sluggish until the first half of 2026, and the battery sector is facing heightened rivalry from competitors such as LG Energy Solution and SK On. In a March 2026 report, the company’s operating loss in the fourth quarter was reported at 257 billion won (approximately $176 million). Despite this, the CEO maintained confidence that a turnaround would begin in the second quarter of the year.
Samsung SDI’s focus on AI aligns with broader trends in the semiconductor and battery industries, where AI workloads are driving demand for high‑performance chips and advanced materials. The company’s expansion into semiconductor packaging and display materials positions it to benefit from the growing need for high‑efficiency, high‑definition components in AI‑enabled devices.
In closing, Choi acknowledged that “there is still a long way to go” and called on employees to embrace change. The anniversary ceremony also featured an awards presentation and a town‑hall meeting, underscoring the company’s commitment to employee recognition and transparent communication.
While Samsung SDI has outlined a path toward profitability and AI integration, the company’s ability to sustain its gains will depend on continued execution, market recovery in the EV sector, and the successful deployment of its new material lines. Investors and industry observers will watch for quarterly financial updates and any further announcements regarding product launches or strategic partnerships.
Choi said the company had adopted a “pessimistic optimism” mindset, steadily strengthening its core operations in the face of a slowing global electric‑vehicle (EV) market and intensifying competition. He reiterated a promise made earlier in the year that earnings would turn positive, noting that the company’s recent achievements in energy‑storage systems, supply agreements with premium automakers, and the revitalization of its cylindrical‑cell business would support that outlook.
The CEO highlighted several specific milestones. Samsung SDI secured a series of energy‑storage‑system (ESS) projects, signed supply contracts with global premium automakers, and restored competitiveness in its cylindrical‑battery line. The company also expanded into high‑value materials, including advanced packaging semiconductor materials and high‑definition, high‑efficiency display materials. Choi emphasized that sustained execution would be essential to translate these gains into long‑term growth.
Beyond battery production, Choi urged the workforce to embrace artificial intelligence (AI) more actively. He described AI as already embedded in many aspects of daily life and as the next major driver of corporate competitiveness. According to the CEO, Samsung SDI must transform into a true AI‑native company to secure a leading position in future markets. He referred to agentic AI as a paradigm shift that could fundamentally reshape how companies operate and develop business models.
The announcement comes at a time when Samsung SDI is navigating a challenging environment. Industry analysts note that global EV demand is expected to remain sluggish until the first half of 2026, and the battery sector is facing heightened rivalry from competitors such as LG Energy Solution and SK On. In a March 2026 report, the company’s operating loss in the fourth quarter was reported at 257 billion won (approximately $176 million). Despite this, the CEO maintained confidence that a turnaround would begin in the second quarter of the year.
Samsung SDI’s focus on AI aligns with broader trends in the semiconductor and battery industries, where AI workloads are driving demand for high‑performance chips and advanced materials. The company’s expansion into semiconductor packaging and display materials positions it to benefit from the growing need for high‑efficiency, high‑definition components in AI‑enabled devices.
In closing, Choi acknowledged that “there is still a long way to go” and called on employees to embrace change. The anniversary ceremony also featured an awards presentation and a town‑hall meeting, underscoring the company’s commitment to employee recognition and transparent communication.
While Samsung SDI has outlined a path toward profitability and AI integration, the company’s ability to sustain its gains will depend on continued execution, market recovery in the EV sector, and the successful deployment of its new material lines. Investors and industry observers will watch for quarterly financial updates and any further announcements regarding product launches or strategic partnerships.
