Samsung Takes Strategic Action to Expand Battery Investments

Samsung may have suffered losses in its battery business, but the company has big ambitions for the future. Samsung SDI has reportedly planned to sell its stake in Samsung Display to secure investment resources. This could allow the Korean battery maker strengthen its Energy Storage System (ESS) business and ramp up the development of all-solid-state batteries.

Samsung SDI plans to sell its stake in Samsung Display

According to Korean media, Samsung SDI has informed its board of directors of the plan to sell its stake in Samsung Display. The company owns 15.22 percent of Samsung Display (valued at around 10 trillion won). However, key details are still under wraps. “Going forward, the Sustainability Management Committee, comprised solely of outside directors, will review all relevant details, including the transaction counterparty, scale, terms, and timing, and report to and obtain board approval,” said a Samsung SDI representative.

So, why is Samsung SDI taking this bold step? The company’s cash flow alone is not enough to support its ambitious future plans. Last year, Samsung SDI saw a loss of over 1 trillion won, mainly because of weaker sales in its electric vehicle battery business. However, industry watchers expect the stake sale is not to stabilize finances but to increase investment in key areas such as ESS and all-solid-state batteries.

Samsung SDI continues to expand its ESS portfolio with a host of products, including nickel-based SBB 1.7 and LFP-based SBB 2.0 batteries. In the US, the company has converted part of its StarPlus Energy joint venture with Stellantis from EV battery line to ESS battery production. Meanwhile, Stellantis is reportedly planning to exit the joint venture. As a result, the battery maker might acquire the automaker’s 49 percent stake in StarPlus Energy.

In Europe, Samsung SDI plans to convert part of its Hungary plant to make LFP batteries. Moreover, the company plans to commercialize all-solid-state batteries in 2028. These batteries could play a key role in the future for products like humanoid robots. We should learn how the firm utilizes funds from the stake sale in the coming months.