Samsung SDI Shares Rally, Extending Gains After First Battery Deal With Mercedes-Benz
By Kwanwoo Jun
Shares of Samsung SDI extended their gains after its first electric-vehicle battery supply deal with German auto giant Mercedes-Benz Group.
The South Korean battery maker on Monday announced a multiyear EV battery supply agreement with Mercedes-Benz. The German carmaker would use Samsung SDI's batteries for its next-generation sports utility vehicles and coupe models.
The deal's exact value and duration were undisclosed, but the contract marked Samsung SDI's first EV battery deal with Mercedes-Benz, building on supply deals with the other two major German carmakers, BMW and Volkswagen. Samsung SDI runs a battery plant in Hungary, one of the biggest ones in Europe.
Samsung SDI's stock climbed as much as 19% to 641,500 won, equivalent to $435.78, in early Tuesday Seoul trading, putting it on track for its sharpest daily percentage rise in three months. The stock advanced 4.9% Monday on the new contract win.
Other local EV battery stocks also advanced this week, with LG Energy Solution rising as much as 11% Tuesday following a 2.6% gain on Monday. LG also has a supply deal with Mercedes-Benz.
The rally in local EV battery names may reflect increased appetite for renewable energy plays given the Middle East conflict and shocks to the oil market, some analysts said.
"Preference for EVs is rising as high oil prices persist, with Samsung SDI set to supply high-nickel NCM batteries to Mercedes-Benz," Kyobo Securities analyst Kim Kwang-shik said in a note.
Still, Samsung SDI and other South Korean battery makers are seeing sluggish global EV demand and many are turning to energy storage systems to sustain growth.
Earlier this month, Samsung SDI secured 1.5 trillion four-year ESS battery supply contract in the U.S. as it waits for a recovery in global EV demand.
"While a significant near-term recovery in EV battery demand appears limited, factory utilization rates are expected to improve on anticipated policy support and subsidies in Europe," said Shinhan Securities analysts Jinmyung Lee and M.J. Kim in a note on Tuesday.
They expect Samsung SDI to have reduced its operating losses in the January-March period.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
April 21, 2026 00:38 ET (04:38 GMT)
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