Seoul: Samsung SDI Co. announced on Monday that it continued to experience losses in the fourth quarter of 2025, primarily due to decreased demand for electric vehicles in the United States. However, the company's energy storage system (ESS) business performance helped mitigate some of the losses.

According to Yonhap News Agency, Samsung SDI recorded a net profit of 207.8 billion won (US$142.4 million) for the October-December period, in contrast to the 242.7 billion won loss reported in the same period of 2024. The company's operating loss for the fourth quarter was 299.2 billion won, compared with a 256.7 billion won loss a year prior, while sales increased by 2.8 percent to 3.85 trillion won.

Breaking down the sectors, the battery business reported an operating loss of 338.5 billion won, whereas the electronic materials sector achieved an operating profit of 39.3 billion won. Within the battery segment, the ESS business recorded its highest-ever quarterly revenue, with the U.S. Advanced Manufacturing Production Credit (AMPC) playing a role in reducing losses.

For the entirety of 2025, Samsung SDI reported a net loss of 584.9 billion won, reversing from a net profit of 575.5 billion won the previous year. The operating loss for the year amounted to 1.72 trillion won, compared to a profit of 363.3 billion won in the preceding year, and annual sales saw a decline of 20 percent, totaling 13.26 trillion won.

Despite facing challenges such as policy changes in key markets and reduced EV demand from strategic U.S. customers, Samsung SDI managed to secure substantial orders from global clients by enhancing its overseas sales efforts in the ESS market, as noted in the company's release.

Samsung SDI highlighted its initiatives to enhance technology competitiveness by collaborating with Germany-based BMW AG to test all-solid-state battery technology and signing an agreement with Hyundai Motor Group for the development of robot batteries.

Looking forward, Samsung SDI anticipates sustained growth in the ESS market due to strong demand from the artificial intelligence (AI) industry. The company expects a resurgence in the small battery market, driven by professional power tools as AI data center construction accelerates, along with growth in emerging fields like robotics.

Samsung SDI emphasized its commitment to improving management efficiency, responding swiftly to customer and market needs, and preparing for future technologies, aiming for a significant business turnaround in the coming year.