Samsung SDI Automotive Battery Business Divides: Energy Storage Market Accelerates 50% with AI Boost

Samsung SDI Faces New Market Segmentation. The Korean battery giant’s electric vehicle battery business is experiencing pain, but the energy storage sector is迎来 new opportunities due to the explosion of artificial intelligence applications. Morningstar analyst Vincent Sun recently released a new assessment, providing an in-depth picture of the company’s current business landscape transformation.

Auto Batteries Cool Down, Impact of U.S. Subsidy Rollback Emerges

Adjustments to U.S. electric vehicle subsidy policies are triggering chain reactions. Once considered a growth engine, the automotive battery business is now facing a significant demand decline. Morningstar analysts expect Samsung SDI’s electric vehicle battery revenue to decline by about 12% this year, reflecting market sensitivity to subsidy withdrawals.

From the macro perspective of the global electric vehicle market, the tightening of U.S. new energy vehicle subsidy policies directly suppresses end-market automakers’ procurement demand. The sales momentum once driven by subsidies is gradually weakening, with upstream battery suppliers bearing the brunt. This also marks a transition of the electric vehicle industry from a policy-stimulated phase to a market-driven growth phase.

Energy Storage Systems Shine, AI Boom Sparks New Energy Demands

In stark contrast to the difficulties faced by automotive batteries, Samsung SDI’s energy storage system (ESS) business shows a completely different growth trajectory. The rapid application of artificial intelligence technology has significantly increased the demand for power supply in data centers and cloud computing infrastructure, thereby triggering a surge in storage system demand.

Management’s forecast is even more encouraging: ESS revenue is expected to achieve a strong 50% growth this year. This growth not only fully offsets the decline in automotive batteries but also creates new momentum for the company’s overall performance growth. As domestic energy storage capacity expands and output increases in the U.S., the profitability of this business is also expected to further improve, indicating that there is still room for gross margin enhancement.

Stock Price and Valuation Battles, Morningstar Maintains Cautious Stance

Despite the positive outlook for the energy storage business, Morningstar remains cautious about Samsung SDI’s overall valuation. The analyst’s new fair value target is 297,000 Korean won, implying that the current stock price still has an overvaluation component. This judgment reflects market uncertainty regarding the company’s shift from automotive batteries to energy storage.

As of the latest trading, Samsung SDI’s stock price is 391,500 Korean won, up 4.5% recently. The market’s reaction to the company’s business restructuring is still in the exploratory stage. Whether the growth potential of the energy storage business can fully compensate for the contraction of automotive batteries will be a key variable in determining the stock’s future performance.