# Samsung SDI swings to profit on AI data center battery surge *Third-quarter operating income reached 407.8 billion won as utility-scale storage orders topped 60 gigawatt-hours, offsetting sluggish electric vehicle cell demand across North America.* **Published:** October 29, 2026 **By:** Seung-min Park **Section:** Batteries & Electric Vehicles — South Korea **Format:** Breaking **Confidence:** medium **Source:** https://eastasiabrief.com/batteries-ev/samsung-sdi-swings-profit-ai-data-center-battery-surge-995 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Third-quarter operating profit reached 407.8 billion won to reverse a 591.3 billion won loss - ESS order backlog topped 60 gigawatt-hours to book factory capacity through 2028 - First LFP shipments from the Indiana StarPlus Energy plant begin in December 2026 ![A worker assembles battery modules for energy storage systems inside a Samsung SDI manufacturing facility. (AI-generated image)](https://eastasiabrief.com/media/2026-10-29-5b9e43598e54.webp) *A worker assembles battery modules for energy storage systems inside a Samsung SDI manufacturing facility. (AI-generated image)* Samsung SDI reported an operating profit of 407.8 billion won on Oct. 29, 2026, swinging into the black as artificial intelligence data center operators accelerated energy storage system deployments. The operating result for the July-September quarter reverses a loss of 591.3 billion won from a year earlier. Consolidated revenue rose 52.6% year-on-year to 4.69 trillion won ($3.44 billion). Operating income doubled from 203.8 billion won in the second quarter. The performance marks the highest quarterly profit for Samsung SDI in 12 quarters, approaching levels last recorded in the third quarter of 2023. The battery segment generated 4.41 trillion won in revenue, up 55.3% from the third quarter of 2025. The division generated 361.9 billion won in operating profit, accounting for 88.7% of consolidated operating income. Global utility operators and data centers lifted shipments of containerized energy storage systems (ESS) and battery backup units (BBU). BBUs supply immediate reserve power to computer server racks during electrical distribution interruptions. The electronic materials division generated revenue of 275.7 billion won and an operating profit of 45.9 billion won. Those divisional earnings increased 18.9% and 18.3% from the prior year on semiconductor patterning materials demand. Consolidated earnings included 122.5 billion won ($89.8 million) in Advanced Manufacturing Production Credit (AMPC) benefits. The subsidy flows under the United States Inflation Reduction Act for domestic cell manufacturing. Excluding the United States tax credit, standalone operating profit stood at 285.3 billion won. The core business remained profitable without policy incentives due to higher unit margins on grid equipment. Automotive battery lines experienced volume slowdowns as Western automakers trimmed electric vehicle assembly targets. Samsung SDI countered vehicle cell drag by shifting factory allocation toward grid-scale power infrastructure. Power grids supporting artificial intelligence clusters require dedicated battery backup to balance load swings. Surging computational loads have caused utility connection delays across key metropolitan transmission hubs in North America. Cumulative orders for grid-scale storage products exceeded 60 gigawatt-hours through October 2026, the company said. The volume guarantees manufacturing lines will run at full operational capacity through 2028. Production commitments cover output from the StarPlus Energy joint venture plant in Kokomo, Indiana, and dedicated lines in Ulsan. Both plants are reconfiguring equipment previously intended for passenger vehicle packs. Alpha Omega Power signed a supply agreement with Samsung SDI America on Oct. 26, 2026. The contract covers 1 gigawatt-hour of containerized energy storage for installation in Texas. The Texas supply agreement expands cumulative shipments to Alpha Omega Power to 1.5 gigawatt-hours. Deliveries will consist of the Samsung Battery Box 1.7 system manufactured in Indiana. The Samsung Battery Box integrates prismatic nickel-cobalt-aluminum cells into standard 20-foot shipping containers. High-nickel cathode chemistry raises unit energy density by 17% compared to previous utility enclosures. The integrated container units carry direct injection fire suppression systems that pipe flame retardant into module enclosures. Safety testing protocols meet National Fire Protection Association standards required by municipal zoning boards. The battery maker also expanded into lithium iron phosphate (LFP) chemistry to address cost-sensitive utility project developers. The cell format replaces expensive nickel and cobalt with iron and phosphorus. Commercial production of high-capacity prismatic lithium iron phosphate cells began at the Indiana plant in October 2026. Customer shipments from the initial North American production run are scheduled to begin in December. Two additional assembly lines at StarPlus Energy will undergo conversion to lithium iron phosphate manufacturing during 2027. Capacity from those converted Indiana lines is fully committed under multiyear off-take agreements. Samsung SDI also secured long-term procurement contracts for lithium iron phosphate cathode active materials with domestic suppliers. The supply contracts aim to reduce reliance on mineral supply chains controlled by China. The company entered the European energy storage market by securing supply agreements for utility battery units. Negotiations for supplemental delivery schedules covering 2029 and beyond are scheduled to conclude before Dec. 31. The regulatory filings do not state the pricing terms, delivery volumes or contract durations agreed with individual hyperscale computing operators, which Samsung SDI classifies as confidential trade secrets. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | AI grid storage boom | Samsung SDI logs 407.8 billion won profit, shifting cell capacity from EVs to ESS | Chinese LFP cell makers face narrowing access to US utility procurement deals | Component suppliers to Indiana plant see order schedules extended through 2028 | AI data center operators secure domestic non-Chinese backup battery capacity in North America | ## In this story - **Companies:** Samsung SDI - **Tickers:** 006400.KS - **Exposed:** Alpha Omega Power - **Policy:** Subsidies, Tax Credits - **Impact:** Capex, Order Book, Cost Structure ## Primary sources 1. news1.kr 2. samsungsdi.co.kr 3. newsian.co.kr 4. yonhapnewstv.co.kr 5. zdnet.co.kr --- Cite as: East Asia Brief, "Samsung SDI swings to profit on AI data center battery surge," October 29, 2026. https://eastasiabrief.com/batteries-ev/samsung-sdi-swings-profit-ai-data-center-battery-surge-995