🔥 Samsung SDI: Beyond Returning to Profit, AI Power Demand Is Emerging - 2026.08.04

Now, now~ From Onion’s perspective, Samsung SDI’s new issue is not simply its return to profitability, but what kind of demand it can build on top of it. It posted an operating profit of 203,800,000,000 KRW in the second quarter, returning to the black for the first time in seven quarters, and reports said it remained profitable even excluding 96,100,000,000 KRW in U.S. advanced manufacturing production tax credits ^[1]. On top of that, cylindrical batteries are finding a new stage in battery backup units for artificial intelligence data centers ^[2]. The story of confirming the bottom in earnings and the story of finding new markets have arrived at the same time.

Profitability Returns—But Is the Quality Different This Time? 📈

The point that stands out in these results is that profitability was not achieved solely through tax credits. Of course, one quarter’s figures alone are not enough to conclude that the earnings trend has completely changed. Still, the fact that the battery business, which had been pressured by costs and demand, produced a profit is a change the market can respond to.

But the market always asks one step further: “Will the profits continue into the next quarter?” This is where ESS and data centers enter the picture. The key variable remains whether applications are broadening beyond a picture focused solely on electric vehicle demand. Profits, too, cannot simply be charged and left as they are like a battery; they need to keep generating output. To put it in a manager’s terms, profits also need a power supply ☕

Cylindrical Batteries: From Power Tools to Data Centers 🚀

Samsung SDI is expanding the applications of cylindrical batteries from existing power tools and home appliances into the battery backup unit market for artificial intelligence data centers. The company is targeting the data center power backup market by emphasizing space efficiency, high output, and safety ^[2].

This is meaningful because it goes beyond selling one more product and represents an attempt to broaden the uses of cylindrical batteries. If it aligns with the broader industry trend of artificial intelligence data centers consuming large amounts of power, the bullish scenario of creating a demand source different from electric vehicles looks clearly plausible. However, the article does not confirm actual sales scale or profitability. Therefore, it is more accurate to view the current situation as “market entry and expansion efforts.”

Onion believes Samsung SDI’s bullish scenario depends not on an electric vehicle recovery alone, but on two demand streams: ESS and data centers. Batteries are also gaining a wider range of career options, so to speak. They are moving from interviewing only for electric vehicles to interviewing for power backup as well.

North American ESS: Opportunity and Competition on the Same Screen 🔥

There was also news that Samsung SDI is considering securing additional production capacity to respond to North American ESS demand. Reports said it has already secured enough orders for its existing production capacity to run at full utilization through 2029 ^[3]. The company is still only reviewing whether to secure additional capacity, but it is clear that responding to volume demands in North America has become important.

The global market is growing as well. Global lithium-ion battery ESS shipments reached 461.3GWh in the first half of this year, up 71% from the same period last year ^[5]. A growing demand pie is welcome news for the bulls. But a bigger pie does not automatically mean a bigger slice for a particular company.

Shipments Increased, So Why Did Market Share Fall?

Samsung SDI shipped 6.4GWh of ESS batteries in the first half of this year, but its global market share declined from 2.0% to 1.4%, while its North American share fell from 9.7% to 6.1%. At the same time, reports confirmed that it secured a new demand source by supplying 1.6GWh for artificial intelligence data centers ^[4].

Both sets of numbers need to be viewed together. Shipments and data center supply show new opportunities, but the decline in market share suggests that competitors’ production expansions and order execution speeds are also formidable. Ultimately, the next questions are whether the review of additional production capacity will lead to actual supply expansion and market share recovery, and whether data center supply will translate into sustainable profits. The market’s applause has begun, but the conditions for the encore stage are still undecided.

📰 Reference News (5)

1

Samsung SDI, Second-Quarter Operating Profit 203,800,000,000 KRW… Returns to Profitability After Seven Quarters

네이버뉴스 · 2026.08.04

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3

ESS Becomes a ‘Battlefield’ ⋯ K-Batteries Launch All-Out Effort to Secure U.S. Production Capacity

네이버뉴스 · 2026.08.04

📰 View original

4

“Global Lithium-Ion Battery ESS Shipments Grew 71% in the First Half”

네이버뉴스 · 2026.08.03

📰 View original

5

ESS Growth Accelerates with Rising Power Demand… LG Energy Solution and Samsung SDI Target the North American Market

네이버뉴스 · 2026.08.04

📰 View original