Samsung SDI said on April 28 it posted first-quarter revenue of 3.58 trillion won and an operating loss of 155.6 billion won.

From a year earlier, revenue rose 12.6 percent and the operating loss narrowed 64.2 percent, or 278.5 billion won. Net profit was 56.1 billion won, returning to the black.

By segment, the battery business posted revenue of 3.35 trillion won and an operating loss of 176.6 billion won. The electronic materials business recorded revenue of 222.0 billion won and operating profit of 21.0 billion won.

In the battery segment, demand recovered in downstream markets such as power ESS (energy storage systems), UPS (uninterruptible power supplies), BBU (battery backup units) and power tools. Revenue rose 12.5 percent from a year earlier and the operating loss narrowed 61.0 percent.

AMPC (advanced manufacturing production tax credit) benefits increased on expanded local production and sales of ESS batteries in the United States. Profitability also improved on strong sales of high value-added cylindrical batteries.

In electronic materials, semiconductor materials sales remained steady. Display materials sales rebounded as flagship smartphone sales rose at major mobile customers, improving results from a year earlier.

Samsung SDI cited key first-quarter achievements as expanded ESS orders, diversified customer and product portfolios for EV batteries, and stronger future technology competitiveness. It expected results to improve gradually from the second quarter as the recovery in downstream demand continues.

For EV batteries, it forecast demand would recover on expanded subsidies in major European countries and rising total cost of ownership for internal combustion engine vehicles. It plans to push ahead with planned mass production for new projects without disruption, while focusing on restoring profitability by improving utilisation rates.

For ESS batteries, it plans to increase local mass production and sales in response to demand growth driven by the expansion of AI data centres in the United States. It also plans to continue expanding related business by actively participating in South Korea's central contract market for ESS and next-generation power grid-linked ESS projects.

For small batteries, it plans to expand sales with differentiated products such as tabless and high-output batteries. The strategy reflects continued growth in the BBU and power tools markets due to increased construction of AI data centres and a recovery in demand for micro-mobility.

For electronic materials, it forecast demand for semiconductor and OLED materials would continue as downstream conditions remain favourable. It plans to sustain revenue growth by expanding sales of new semiconductor patterning materials and OLED materials.