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Korea Herald

[Exclusive] Samsung SDI revamps sales under CEO amid push for global orders

Move consolidates customer order management, strengthens push for package deals with global automakers Samsung SDI has recently merged its sales teams into a single unit directly overseen by CEO Choi Joo-sun, in an apparent bid to ramp up battery orders across applications ranging from electric vehicles to energy storage systems. According to industry sources on Sunday, the battery maker affiliated with Samsung Electronics restructured its strategy marketing office earlier this month as part of a broader organizational reshuffle. Previously, the company's sales teams operated under separate battery and materials business divisions. Now, they have been consolidated into a unified strategy marketing office that reports directly to the CEO. 'The elevated status demonstrates the company's strong commitment to driving sales and securing overseas orders,' said an industry source familiar with the matter, who requested anonymity. Another source confirmed the change, saying, 'This is a strategic move to consolidate all customer order management functions into a single organization.' Until 2021, Samsung SDI operated the strategy marketing office as an independent division, before splitting it into three business units: one for small batteries, such as cylindrical and pouch lithium-ion cells used in electronic devices and two-wheelers; another for medium- and large-sized prismatic and cylindrical batteries for EVs and ESS; and a third for electronic materials. Even within each unit, marketing activities were reportedly managed separately by application and form factor. 'This shift allows for more streamlined and efficient supply agreements, such as 'package deals' with global OEMs like General Motors and Tesla, which have been seeking multiple battery form factors and applications,' the source added. The restructuring also signals that Samsung SDI is adopting a more aggressive approach to securing corporate orders compared to rivals LG Energy Solution and SK On, which continue to operate separate sales teams under each business division. Samsung SDI's renewed push comes after two consecutive quarterly operating losses, largely due to weak demand for EV batteries from OEMs and reduced profitability in the US ESS market, partly tied to tariffs on automobiles and related components. During its second-quarter earnings call, the company vowed to step up efforts to win global battery orders. 'We have secured orders for cylindrical batteries measuring 46 millimeters in diameter for premium EVs from a leading European global OEM, and we are currently negotiating supply contracts for commercial EVs with a North American startup,' said Kim Jong-sung, executive vice president of Samsung SDI's business management office. He added that the company is also in talks with another major European automaker regarding entry-level EV lithium iron phosphate prismatic batteries, as well as nickel, cobalt and aluminum prismatic cells for commercial vehicles. According to Kim Soo-hwan, head of the mid-to-large battery division, Samsung SDI has so far pursued a premium EV battery strategy but now intends to target the entry-level market as well, reflecting rapid growth in the budget EV segment. In the ESS sector, Samsung SDI plans to convert part of its first joint venture battery cell plant with Stellantis from EV to ESS production. With mass production scheduled to begin in the fourth quarter of this year, Kim emphasized that the company has already secured orders for the line through next year.