Samsung SDI Co., Ltd. Business Report FY ended Dec. 2020
Financial Overview (Consolidated) |
(KRW millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | Rate of Change (%) |
Factors | |
| Sales | 11,294,770 | 10,097,426 | 11.9 | -Year-on-year growth in all business segments: medium and large batteries, compact batteries, and electronic materials.
-Energy Solutions division: Increase in sales of batteries for automobiles due to the impact of environmental policies such as EV subsidies in Europe -Electronic Materials division: Increased sales of semiconductor materials due to favorable market conditions, and increased sales of high value-added polarizing films due to increased demand for large-screen TVs. |
| Operating income | 671,335 | 462,177 | 45.3 | -Significant increase in automotive battery sales and base effect from one-time ESS business expenses in the previous year |
| Net income | 630,966 | 402,366 | 56.8 |
Recent Business Developments
Announced JV with Stellantis for North American lithium-ion battery production
-In October 2021, Sterantis and the company announced that their companies have entered into a memorandum of understanding to form a joint venture to produce battery cells and modules for North America. Targeted to start in 2025, the plant aims to have an initial annual production capacity of 23 GWh with the ability to increase up to 40 GWh in the future. The location of the new facility is currently under review. The new joint venture will be one of multiple battery plants dedicated to Stellantis EV production in the region. Stellantis is now well advanced in securing annual production capacity for EV batteries, paving the way to achieving 40% of its U.S. sales comprised of electrified vehicles by 2030. (From the release by Sterantis)
| Date | Partner | Agreement |
| Apr. 2021 | Rivian Automotive | Rivian formally announced that Samsung SDI will supply the batteries for its upcoming electric R1T pickup and R1S SUV. The two companies had been working together through the entire vehicle development process. The battery modules and packs were developed by Rivian in-house and are expected to offer fast charging capability and over 300 miles of range. フRivian, which has financial backing from both Ford and Amazon, has already announced that its battery pack warranty will surpass those from Tesla and Ford. (multiple sources on April 12, 2021) |
| Apr. 2021 | Hyundai | Hyundai Motor is seeking to build a partnership with Samsung SDI. Samsung SDI is developing a cylindrical battery to be used in Hyundai's new hybrid vehicle models scheduled in 2024. Samsung SDI has not yet supplied EV batteries to Hyundai Motor. SK Innovation, LG Energy Solution and China's CATL have supplied the batteries for Hyundai. Hyundai is seeking to diversify its vendors further, as a means to secure supply. (multiple sources on April 14, 2021) |
| Nov. 2019 | BMW | Signed a contract with BMW on the supply of the battery cells for electric vehicles (Evs). The sales under the deal are expected to reach EUR 2.9 billion or JPY 348.73 billion. The deal is valid from 2021 to 2031. The two companies have been working on the joint EV development project since 2009, and Samsung SDI is currently supplying batteries for the BMW i3 and i8. (From some releases on November 21, 2019) |
| Sep. 2019 | AKASOL |
AKASOL announced that it has nominated Samsung SDI as supplier of lithium-ion battery cells and modules for two large serial orders for leading global commercial vehicle manufacturers. Samsung SDI will supply lithium-ion battery cells and modules with a total volume of 13 GWh to the German battery system manufacturer from 2020 through 2027. The battery cells and modules will be produced in Europe and Asia, after which they will be built into the German manufacturer's various battery modules and systems at its existing serial production site in Langen, Germany, as well as at AKASOL's new headquarters in Darmstadt, Germany. (AKASOL press release) |
| Jul. 2019 | Volvo Group |
Entered into a strategic alliance to develop battery packs for Volvo Group’s electric trucks. Working together with Samsung SDI, Volvo Group aims to accelerate the speed of development and strengthen the long-term capabilities and assets within electromobility, to the benefit of customers in different truck segments and markets. Samsung SDI intends to provide battery cells and modules to meet the demand for the Volvo Group’s electric trucks. The intention is that Volvo Group will utilize Samsung SDI’s battery pack technology for assembly in Volvo Group’s manufacturing operations. (Volvo Group press release) |
Business trends related to the production of positive and negative electrode materials
<Positive electrode material>
Established EcoPro EM, a joint venture with positive electrode material manufacturer
-EcoPro BM Co., Ltd., a South Korean positive electrode material manufacturer, set up a new positive electrode material manufacturing company named EcoPro EM jointly with battery manufacturer Samsung SDI Co., Ltd. (Samsung SDI). The capital investment for the joint venture company is KRW 120 billion (JPY 11.16 billion) of which EcoPro BM invested 60% and Samsung SDI 40%. The construction of the new company will start within 2020 in Pohang city, North Gyeongsang Province. The production launch is scheduled in the first quarter of 2022. (From various releases dated February 11, 2020)
Construction of EcoPro EM plant begins
-Several South Korean media sources reported that EcoPro BM Co., Ltd.’s (EcoPro BM) and Samsung SDI’s joint venture company, EcoPro EM, has begun constructing its plant. The new plant in Pohang, North Gyeongsang Province, will start producing high nickel cathode materials in the first quarter of 2022 and produce 31,000 tons annually. The total investment in this project is KRW 180 billion (JPY 16.92 billion). All the cathode materials produced at this plant will be supplied to Samsung SDI. (From various releases dated November 18, 2020)
Sell part of positive electrode material production lines to its wholly-owned subsidiary
-Several South Korean media sources reported that Samsung SDI will sell part of its positive electrode material production facilities to its wholly-owned subsidiary, STM Co., Ltd. (STM). The sale price will be KRW 109.7 billion (about JPY 10.5 billion). Samsung SDI will sell part of its positive electrode material production lines and plant building under construction in Ulsan in the July-September quarter of fiscal 2021. Also, Samsung SDI will kick in KRW 150 billion to STM to allow the subsidiary to invest in the project. Samsung SDI plans to boost its competitiveness and expertise in the materials sector by gradually consolidating the positive electrode material production lines at STM. (From various releases on July 29, 2021)
EcoPro completes positive electrode material plant
-EcoPro EM has completed the construction of a new plant in Pohang, North Gyeongsang Province, South Korea. The new plant will produce positive electrode materials for secondary batteries. The company will start mass production in the first half of 2022 and deliver all the products to a secondary battery manufacturer, Samsung SDI. With the completion of the new factory, EcoPro EM's plant in Pohang can now produce 36,000 tons of high-nickel positive electrode material annually, which is enough for 400,000 electric vehicles (EV). (From various releases dated October 21, 2021)
<Negative electrode material>
Procurement of Negative electrode materias from a Belgian company
-Umicore of Belgium signed a multi-year strategic agreement with Samsung SDI for the supply of close to 80,000 metric tons of high-performance NMC (Nickel Manganese Cobalt) cathode materials starting in 2020. The cathode materials will be supplied from Umicore plants in different regions with the majority of volumes initially produced in Korea. A vast portion of the volumes are intended for automotive applications and a smaller part for energy storage systems. The agreement provides Samsung SDI security of supply to accommodate their fast-growing lithium-ion battery business in Europe and Asia, particularly in automotive applications. Samsung SDI will further benefit from Umicore’s track record of producing reliable and high-performance complex cathode materials at large scale while meeting the strictest quality and sustainability requirements. The sizeable volume commitment included in the agreement offers critical predictability and visibility along the EV supply chain. (Umicore press release)
R&D Facilities
| Name of facility | Location |
| SDI Laboratory | Korea Gyeonggi-do, uwon-si |
R&D Expenditure |
(in KRW millions) |
| FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | |
| Amount | 808,335 | 712,558 | 604,795 |
| % of sales | 7.16% | 7.06% | 6.59% |
※Including government subsidies
Exhibited at InterBattery 2020 held in Seoul, Korea
-The company will show compact and medium-sized EV batteries and large-sized energy storage system (ESS) batteries, which the company is currently manufacturing. Also, it plans to exhibit the Range Rover plug-in hybrid vehicle (PHEV) equipped with its batteries. The company will also unveil a road map for the development of materials and battery cells for all-solid-state batteries as the company is planning to launch production in 2027. (From a press release on October 20, 2020)
Capital Investments |
(KRW 100 millions) |
| FY ended Dec. 31, 2020 | ||
| Energy Solutions | New plant construction/expansion, complementary investment, etc. | 14,653 |
| Electronic Materials | 1,066 |
-For 2021, the company plans to make investments in all business segments, especially in the battery business.
<Hungary>
-Several South Korean media sources reported that Samsung SDI Co., Ltd. (Samsung SDI) will expand production capacity at its EV battery plant in Hungary, investing KRW 1 trillion (JPY 95 billion). The company’s plant in God in the Northern part of Hungary makes batteries with an annual production capacity of 30GWh for European automakers such as BMW and Volkswagen. The expansion will allow the company to boost the annual production capacity in Hungary to 40GWh. (From several releases dated February 23, 2021)
<U.S.>
-In August 2021, it was reported that the company was in talks to build a battery plant in Illinois. Rivian, which has a plant in Normal, Illinois, announced on April 12 that Samsung SDI will supply battery cells for its vehicles. It was previously reported that negotiations were underway to supply US-made batteries to Stellantis and Rivian. (multiple sources on August 12, 2021)