Seoul: Samsung SDI Co., a prominent South Korean battery manufacturer, announced on Thursday that it has swung to a profit in the second quarter, recovering from a loss in the same period last year. The turnaround is attributed to increased battery sales and a U.S. tax credit.
According to Yonhap News Agency, the company's net profit for the three months ending in June reached 471.6 billion won (US$327 million), a significant shift from a net loss of 166.7 billion won during the corresponding period the previous year. The increase in earnings was largely driven by a rise in electric vehicle (EV) battery shipments to Europe and heightened demand for high-voltage batteries used in power tools, uninterruptible power supply (UPS) systems, and battery backup units (BBUs).
The company further explained that a substantial tax credit granted under the Advanced Manufacturing Production Credit (AMPC) program from the U.S. Inflation Reduction Act contributed to the improved quarterly earnings. Samsung SDI also reported an operating profit of 203.8 billion won in the second quarter, reversing an operating loss of 397.8 billion won from the year before, while sales climbed 18.5 percent to 3.76 trillion won from 3.18 trillion won in the same timeframe.
For the first half of the year, Samsung SDI achieved a net profit of 527.7 billion won, compared to a net loss of 382.7 billion won in the first half of 2025. This recovery was supported by long-term contracts to supply energy storage systems (ESSs) to U.S. clients and an increase in demand for UPS systems and BBUs, the company noted.
Looking ahead, Samsung SDI anticipates continued earnings recovery in the second half. In its ESS business, the company plans to strengthen its local supply chain in the U.S. and prepare for the mass production of prismatic lithium iron phosphate (LFP) batteries. The demand for utility-scale ESS and UPS systems is expected to rise rapidly, fueled by investments in artificial intelligence (AI) data centers.
For its EV battery segment, Samsung SDI aims to expand supplies for mass-market models in Europe while exploring new business opportunities, including LFP battery projects. The company commenced operations at its StarPlus Energy battery plant in Indiana in late 2024 and is constructing two additional plants in the U.S. One plant is in collaboration with Stellantis N.V., and the other with General Motors Co.
The Indiana facility is managed by StarPlus Energy, a joint venture between Samsung SDI and Stellantis, with respective stakes of 51% and 49%. Beyond its U.S. joint ventures, Samsung SDI runs two battery cell plants in South Korea and maintains four overseas plants in China, Hungary, and Malaysia.