The chief executive of South Korean battery maker Samsung SDI said on Wednesday that demand for electric vehicles is expected to remain subdued until the first half of 2026.
Speaking at a major battery expo, CEO Choi Joo-sun projected that the company’s earnings would likely bottom out in the first quarter of this year, followed by a gradual recovery starting in the second quarter. Samsung SDI reported an operating loss of 257 billion won ($176.54 million) in the fourth quarter of 2024.
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Rival battery manufacturer LG Energy Solution also reported an operating loss for the same period. CEO Kim Dong-myung stated that its earnings are expected to improve gradually in the second half of 2025. The Tesla supplier posted an operating loss of 226 billion won ($158 million) for the October-December quarter, down from a 338 billion won profit a year earlier.
Samsung SDI held a 3.3% share of the global EV battery market in 2024, ranking among the top ten suppliers, according to South Korean research firm SNE Research. CATL remained the largest EV battery manufacturer, followed by BYD. CATL’s battery installations totaled 339.3 GWh in 2024, a 31.7% increase from 257.7 GWh in 2023, securing a 37.9% market share.
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In December 2024, StarPlus Energy LLC, a joint venture between Stellantis and Samsung SDI, received a conditional commitment of up to $7.54 billion in loans from the U.S. Department of Energy to develop two EV battery plants in Kokomo, Indiana.