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- Due To The Increasing Trend Of Electric Vehicle, The Company Will Benefit From It 300 Crores
New DelhiOne hour ago
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Automakers have issued a statement, saying that Samsung’s SDI (State Director Industries) has spoken of increasing demand for electric vehicle (EV) batteries. This will be the first time that Samsung battery demand is set to increase in the second quarter. Also, for the first time, a change in supply profit is expected.
Samsung SDI, the battery-making arm of Samsung Electronics Company, has estimated around $3 billion (300 million) in sales and $252.7 billion in operating profit in the April-June period. These estimates are based on 1 month sales of 15 local brokerage houses.
Received more orders for making batteries
A division of Samsung SDI manufactures batteries for EVs and Energy Storage Systems (ESS). This will be the first time that profit is expected in the second quarter. The company says that this time the electric vehicle maker has placed more orders for making batteries.
Samsung supplies BMW batteries
According to a report by Yonhap news agency, the company supplies batteries to German automaker BMW. Also, its batteries will be used in the upcoming electric pickup and SUV of American electric vehicle startup Rivian.
In contrast, its larger competitor, LG Energy Solutions Ltd., expects lower earnings in Q2 on account of costs for its ESS battery recall.
LG recalled the battery
Last month, a collaboration with LG Chem Ltd said it would itself replace the lithium-ion batteries used in the ESS. The reason for the company’s recall is the risk of fire. Its estimated cost is about 400 billion won (about Rs 2.63 crore).
The firm said the ESS battery will be replaced at its Nanjing factory in China between April 2017 and September 2018. Despite the ESS-related costs, analysts expect LG Energy to also make great earnings this year.
SK Innovation will compete
The firm is believed to have 2 trillion won in battery suit settlement money from its smaller competitor, SK Innovation. SK Innovation Company, a refinery-to-battery company. A rebound in its petrochemical business and rising demand for EV batteries was expected to deliver strong sales in the April-June period.
SK Innovation had estimated revenues of around ₹700-800 billion from its battery business in the second quarter, up from ₹526.3 billion in sales three months ago.