Is Samsung SDI profitable in 2026?

Not yet as of mid-2026. FY2025 posted a KRW 1.7224 trillion operating loss, its first trillion-won annual deficit. Q1 2026 loss narrowed 64% YoY to KRW 155.6bn, and a July 23, 2026 report forecast Q2 2026 would return to operating profit for the first time in seven quarters.

Who is Samsung SDI's biggest competitor?

Globally, CATL and BYD dominate with over 55% combined EV battery share in 2025. Among Korean peers behind the same US IRA protections, LG Energy Solution (about 9.3% global share) and SK On (about 3.9%) are both outgrowing Samsung SDI, which ranked around 10th globally with roughly 2.4-2.6% share as of January 2026.

Could AI replace Samsung SDI's business?

No. Battery chemistry, cell manufacturing, and safety certification are not automatable by AI models. Instead, AI is a tailwind: data-center demand for battery backup units drove Samsung SDI's small-battery operation rate from 32% to 65% between mid-2025 and June 2026.

Who owns Samsung SDI?

Samsung SDI is publicly traded on the Korea Exchange (KRX: 006400) and also trades a GDR in Frankfurt (XSDG) as of January 2026. It is an affiliate within the Samsung Group conglomerate, distinct from Samsung Electronics and Samsung SDS, not a subsidiary of either.

What is the Samsung SDI Hungary scandal about?

Telex/AFP reporting from February 15, 2026 alleged workers at Samsung SDI's Goad, Hungary plant were exposed to carcinogenic chemicals at up to 510 times permitted limits between 2021 and 2023, with claims of a government cover-up. A May 7, 2026 report also alleged mislabeled battery-waste shipments to Poland.

Does Samsung SDI supply batteries to major automakers?

Yes. As of April 2026 Samsung SDI supplies all three German premium automakers: BMW, Audi, and Mercedes-Benz, including a new Mercedes deal signed April 20, 2026 worth roughly $6.8bn over multiple years. It also runs battery joint ventures with GM (Synergy Cells) and Stellantis (StarPlus Energy).

Automotive companies · South Korea

Samsung SDI

samsungsdi.com ↗

Korean maker of batteries for EVs, energy storage, and small devices.

Protection under test

Assessed 25 July 2026 · Evidence as of 25 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 25 July 2026 · Checkable from Q2 2026 · Every call on the record Checkpoint: Q2 2026 earnings release, first forecast return to operating profit after seven loss-making quarters

The call

Samsung SDI sits behind the same regulatory wall as its Korean rivals but is losing ground to them while an AI-driven ESS order boom starts to narrow its losses.

Samsung SDI manufactures rechargeable batteries for electric vehicles and energy storage systems, competing mainly against CATL and BYD (which dominate globally but are banned from selling to U.S. customers by government rules). The company is harder to replace because it has locked-in deals with major car makers like BMW, Mercedes, and GM, and benefits from those same government rules that keep Chinese competitors out. However, Samsung SDI is losing ground to two other Korean battery makers, LG Energy Solution and SK On, who face no such restrictions and are growing faster. The biggest test is whether Samsung SDI actually returns to profit in the second half of 2026 as expected, and whether it can stop hemorrhaging market share to those unblocked Korean rivals.

Why

AI pressure: AI data-center operators driving battery backup unit demand. AI data-center buildout is feeding this business, pushing small-battery utilization from 32% to 65% in a year. Could AI do the core job? Unlikely.

Bigger players: LG Energy Solution and SK On, the other two Korean battery makers. Both Korean rivals sit behind the same anti-China wall and are growing faster, leaving Samsung SDI at 10th place globally with roughly 2.5% share. Could a giant copy it? Probably.

What protects it. US rules blocking CATL and BYD from non-Chinese ESS supply chains, plus fresh multi-year contracts with Mercedes, BMW, and Audi.

What would change this call

Samsung SDI Q2 2026 operating profit/loss print versus forecast return to profit. Shows whether the turnaround from seven quarters of losses is real.
Global EV battery market share rankings (SNE Research/CnEVPost) for Samsung SDI vs LG Energy Solution and SK On. Shows if Samsung SDI keeps losing ground to the two other Korean rivals.
All-solid-state battery mass-production timeline update for H2 2027 target. Shows whether a key technology bet slips again, signaling execution risk.

Key numbers

FY2025 operating loss KRW 1.72 trillion, about $1.2bn (2026-07-01)
Global EV battery share ~2.4-2.6%, ranked 10th (2026-01-06)
Small-battery utilization rose from 32% to 65% (2026-06-18)

Named risks

Seven consecutive quarters of operating losses including first trillion-won annual deficit in FY2025. Severity: high
Hungary Goad plant carcinogen exposure and toxic waste mislabeling allegations facing EU scrutiny. Severity: medium
All-solid-state mass production target of H2 2027 has a history of timeline slippage. Severity: medium
GM Indiana Synergy Cells JV previously paused amid shifting EV demand, 2027 start date at risk. Severity: medium
Continued EV battery market share erosion versus CATL, BYD, LG Energy Solution and SK On. Severity: high

Rivals, as read in July 2026

Rival	Direction	Evidence
CATL	losing to	CATL and BYD held over 55% combined global EV battery share in 2025 (2026-02-04)
BYD	losing to	Part of >55% combined China share vs Samsung SDI's ~2.5% globally, 2025
LG Energy Solution	losing to	9.3% global share vs Samsung SDI's ~2.5%, Jan-Nov 2025, both Korean and IRA-protected
SK On	losing to	3.9% share with faster 2025 growth than Samsung SDI per Jan 2026 report
Svolt	losing to	Samsung SDI slipped behind Chinese maker Svolt in some rankings, per Jan 2026 report

Questions people ask

Is Samsung SDI profitable in 2026?: Not yet as of mid-2026. FY2025 posted a KRW 1.7224 trillion operating loss, its first trillion-won annual deficit. Q1 2026 loss narrowed 64% YoY to KRW 155.6bn, and a July 23, 2026 report forecast Q2 2026 would return to operating profit for the first time in seven quarters.
Who is Samsung SDI's biggest competitor?: Globally, CATL and BYD dominate with over 55% combined EV battery share in 2025. Among Korean peers behind the same US IRA protections, LG Energy Solution (about 9.3% global share) and SK On (about 3.9%) are both outgrowing Samsung SDI, which ranked around 10th globally with roughly 2.4-2.6% share as of January 2026.
Could AI replace Samsung SDI's business?: No. Battery chemistry, cell manufacturing, and safety certification are not automatable by AI models. Instead, AI is a tailwind: data-center demand for battery backup units drove Samsung SDI's small-battery operation rate from 32% to 65% between mid-2025 and June 2026.
Who owns Samsung SDI?: Samsung SDI is publicly traded on the Korea Exchange (KRX: 006400) and also trades a GDR in Frankfurt (XSDG) as of January 2026. It is an affiliate within the Samsung Group conglomerate, distinct from Samsung Electronics and Samsung SDS, not a subsidiary of either.
What is the Samsung SDI Hungary scandal about?: Telex/AFP reporting from February 15, 2026 alleged workers at Samsung SDI's Goad, Hungary plant were exposed to carcinogenic chemicals at up to 510 times permitted limits between 2021 and 2023, with claims of a government cover-up. A May 7, 2026 report also alleged mislabeled battery-waste shipments to Poland.
Does Samsung SDI supply batteries to major automakers?: Yes. As of April 2026 Samsung SDI supplies all three German premium automakers: BMW, Audi, and Mercedes-Benz, including a new Mercedes deal signed April 20, 2026 worth roughly $6.8bn over multiple years. It also runs battery joint ventures with GM (Synergy Cells) and Stellantis (StarPlus Energy).

Timeline

2026-07-23Report forecasts Q2 2026 return to operating profit on AI data-center ESS boom
2026-07-0156th anniversary; CEO Choi discloses FY2025 operating loss of KRW 1.7224 trillion
2026-06-18Small-battery/BBU utilization jumps to 65% from 32% a year earlier
2026-05-07Report alleges mislabeled battery-waste shipments from Hungary to Poland
2026-04-28Q1 2026 operating loss narrows 64% YoY to KRW 155.6bn on ESS orders
2026-04-20First Mercedes-Benz EV battery supply deal signed, worth up to $6.8bn
2026-03-09Pouch-type all-solid-state battery for physical AI unveiled at InterBattery 2026
2026-02-15Telex/AFP allege carcinogen exposure up to 510x limits at Hungary Goad plant
2026-01-07LG Energy Solution reported at 9.3% global EV battery share, ahead of Samsung SDI
2025-07-31Q2 2025 operating loss of KRW 397.8bn (~$286m), narrowing 8.4% QoQ

Revision history

25 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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