92% of operation rate…Samsung SDI in ‘full charging process’ for small batteries
Park Jung Il | comja77@ | 2018-05-30 10:05:50

Samsung SDI is now speeding up its earnings momentum with its battery business. The capacity utilization rate of the small-sized battery production line is approaching 92%, and the company is expected to invest aggressively in the near future.

According to the Financial Supervisory Service (FSS) on May 29, Samsung SDI`s energy solution division produced 334 million small batteries (cylindrical, square, etc.) in the first quarter of this year, and its average utilization rate reached 92%. The utilization rate is the highest in the first quarter since 2011 and is the same as the second quarter last year. According to the industry, the small-sized battery business, which is mainly used for smartphones, is a low-demand season until January, before the launch of new products. However, demand will increase in earnest after the launch of new products in February. However, demand is expected to surge this year from 1Q, which suggests that supply shortages may occur in the second quarter. The industry expects to see capacity expansion when battery production line utilization exceeds 90%.

Sales of related businesses also increased sharply thanks to the brisk small battery business. In the first quarter, sales of the energy solution business increased by 72.2% from the same period a year ago to KRW 1.14 trillion.

The battery business boomed on the back of increased demand for cylindrical batteries, such as power tools, and increased demand for batteries for automotive and power storage devices (ESS). In the case of cylindrical batteries, especially in the case of cylindrical batteries, Samsung SDI is benefiting from the supply shortage caused by Panasonic`s focus on supply to Tesla electric vehicles.

It is also expected that sales of mid- to large-sized batteries will increase as the Hungarian car battery plant begins operation in earnest. Samsung SDI has been selected as a battery supplier for electric car projects conducted by Volkswagen Group earlier this year and has already supplied batteries to Audi, BMW and Fiat Chrysler. If the company launches full-fledged launches, earnings should expand further. Audi is considering the production of electric vehicles using all solid-state batteries in a number of automotive specialties. Samsung SDI is a joint development company.

A solid-state battery is a solid-state battery that is not a liquid or polymer (jelly component) in the electrolyte, which is the pathway of lithium ions. Even a strong shock, such as a hole in a battery, Samsung SDI has introduced the world`s first all-solid-state battery in 2013, and is currently working on bringing performance to the lithium-ion battery level.

In the securities industry, Samsung SDI, which has been struggling since the Galaxy Note 7 discontinuation, expects to invest aggressively this year. In particular, the company has secured 582.2 billion won in cash from the sale of Samsung C & T`s shares last month, and it is expected to invest in facility investments centered on cylindrical and electric vehicles. On the other hand, Samsung SDI, which is a financial information company, collected 2,108.2 billion won in sales and 109.1 billion won in operating profit in the second quarter. This was an increase of 45% and 1884%, respectively, from the same period last year.

By Park Jung Il comja77@

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