Samsung SDI chief vows earnings turnaround, transformation into 'AI-native company'

Samsung SDI President and CEO Choi Joo-sun expressed confidence in an earnings turnaround this year at the company's 56th anniversary ceremony Tuesday, calling on employees to transform the company into a fully fledged "AI-native" enterprise.

Speaking at the ceremony at the company's headquarters in Giheung, Yongin, Gyeonggi Province, Choi said the company had spent the past year quietly strengthening its fundamentals with a posture of "pessimistic optimism." "As I promised at the start of this year, I expect an earnings turnaround to be achievable," he said.

He cited recent wins including expanded orders for energy storage system (ESS) projects, battery supply agreements with premium global electric vehicle makers, and efforts to restore competitiveness in cylindrical batteries. He also said the company is proactively positioning itself in high-value new business areas such as advanced packaging semiconductor materials and high-resolution, high-efficiency display materials.

"There is still a long road ahead," Choi told employees. "Consistent execution is critical to turning results into sustainable growth."

He placed particular emphasis on AI-driven workplace innovation. "AI has already permeated every corner of our daily lives," he said. "To preempt and dominate future markets, we must completely reinvent ourselves as a genuine AI-native company."

He added that "agentic AI represents a paradigm shift that will fundamentally change the way we work and the way we do business," urging staff to "ride this wave of change boldly and once again rise to become the world's No. 1 technology company."

The anniversary ceremony, which included an awards presentation and roundtable discussion, was attended by Choi and other senior executives, along with recipients of the "SDI Person of the Year" award for outstanding performance across business divisions and employees recognized for long service.

Samsung SDI posted a marked recovery across its major business segments in the first quarter of this year, sharply narrowing its year-on-year losses. First-quarter sales rose 12.6 percent from a year earlier to 3.58 trillion won ($2.32 billion), while the operating loss narrowed by about 64.2 percent — or 278.5 billion won — to 155.6 billion won. Net profit came in at 56.1 billion won, swinging back to the black.

The improvement was driven in large part by higher advanced manufacturing production credits (AMPC) from expanded local production and sales of ESS batteries in the United States, as well as strong sales of high-value cylindrical batteries.

Samsung SDI expects gradual earnings improvement to continue beyond the second quarter, supported by rising ESS demand tied to the expansion of AI data centers in the United States and a broader recovery in end-market demand.

In the EV battery segment, the company plans to push ahead with the mass production of new projects on schedule while focusing on improving utilization rates to restore profitability. For ESS batteries, it intends to expand local production and sales in the United States and broaden its business footprint by actively participating in South Korea's centralized ESS contract market and next-generation grid ESS projects.

In the small battery segment, Samsung SDI plans to grow sales by focusing on differentiated products such as tabless and high-output batteries. The electronic materials segment will pursue sales growth by expanding its lineup of new semiconductor patterning materials and materials for OLED applications.