AI boom drives demand for energy storage systems; ESS business may become a new growth engine for Samsung
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Glonghui, February 4th|Samsung SDI's electric vehicle battery business may face pressure in 2026 due to weak demand after U.S. electric vehicle subsidies expire, Vincent Sun of Morningstar wrote in a report. The analyst predicts that revenue from this business segment will decline by 12%. However, he pointed out that the company's energy storage system (ESS) business has a positive outlook, as the artificial intelligence boom has boosted demand for ESS. He added that management expects ESS business revenue to grow by 50% in 2026, and with increased domestic production in the U.S., profitability is expected to improve. Morningstar has given the stock a new fair value estimate of 297,000 KRW and believes it is overvalued. The stock is currently up 4.5%, trading at 391,500 KRW.
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