Samsung SDI Rallies as It Sets Timeline for New Battery Production
By Kwanwoo Jun
Samsung SDI's shares surged after it gave a timeline for producing a next-generation electric-vehicle battery with better specs, and a likely higher price tag.
Shares of the South Korean company, which supplies batteries to Stellantis, General Motors, BMW and Audi, rose as much as 11% to 405,500 won ($304.86) in early trade, snapping a four-session losing streak and outperforming the benchmark Kospi's 0.3% gain.
The rally came after Samsung SDI's chief executive, Choi Yoon-ho, told reporters at a battery industry fair in Seoul on Wednesday that his company plans to mass-produce all-solid-state batteries starting in 2027.
Unlike conventional EV batteries with liquid-type electrolytes, the new batteries use solid electrolytes in order to ensure much higher energy density and far lower risk of fire or explosion. That makes them comparatively safer, longer lasting and faster to recharge.
Choi also said that his company plans to start mass producing larger-sized cylindrical batteries by 2025 and lithium-iron phosphate batteries by 2026.
Hanwha Investment & Securities analyst Y.W. Lee said in a research note Thursday that he is upbeat on Samsung SDI. As a front-runner in developing all-solid-state batteries, the company is poised to commercialize the new products ahead of its industry rivals, Lee said.
Lee expects all-solid-state batteries to initially sell at around $400 to $600 per kilowatt-hour, pricier than $140 per KWh for existing lithium-ion batteries, and likely be sold to luxury EV brands at first.
But prices for the next-generation batteries could fall to $130-$160 per KWh later on large-scale production, likely fueling greater demand, he reckons.
The Hanwha analyst kept a buy rating and KRW700,000 target price on the stock.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
March 06, 2024 23:06 ET (04:06 GMT)
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