Seoul: Samsung SDI Co., South Korea's second-largest battery manufacturer, announced on Thursday that it experienced a net loss in the second quarter due to an ongoing downturn in electric vehicle (EV) sales.

According to Yonhap News Agency, for the three months ending June 30, Samsung SDI reported a net loss of 166.7 billion won (approximately US$120.2 million), a significant shift from a net profit of 301.2 billion won in the same period the previous year. The company's operating loss for the second quarter was 397.8 billion won, contrasting with an operating profit of 241 billion won a year earlier. Additionally, sales dropped by 22.2 percent to 3.17 trillion won, down from 4.08 trillion won.

Samsung SDI revealed that in the latter half of the year, it aims to boost sales of energy storage system (ESS) batteries and broaden its range of prismatic lithium iron phosphate (LFP) batteries. "We will flexibly operate our U.S. battery plant in Indiana, run by StarPlus Energy -- a 51:49 joint venture with Stellantis N.V. -- due to lower-than-expected market demand," stated Kim Soo-han, vice president overseeing automotive and ESS battery sales, during the company's earnings call.

The company intends to start production of ESS batteries at the StarPlus Energy facility in Indiana within this year as part of its strategy to counter the decline in EV battery demand. Samsung SDI initiated operations at the StarPlus Energy plant in late 2024 and is in the process of constructing two additional plants in Indiana: one in collaboration with Stellantis and another with General Motors Co.

Beyond its U.S. joint ventures, Samsung SDI runs two domestic battery cell plants and four overseas facilities situated in China, Hungary, and Malaysia. For the first half of the year, the company reported a net loss of 382.7 billion won, a reversal from a net profit of 587.8 billion won in the same timeframe the previous year.