Samsung SDI receives price target hike amid new battery technology deals

Samsung SDI is strengthening its market position through strategic technological advancements and new supply agreements. DS Investment Securities has raised its price target for the South Korean battery manufacturer from 840,000 KRW to 940,000 KRW, maintaining a ‘Buy’ rating based on an expected recovery in operating profits by the third quarter of 2026.

The company has secured a long-term supply contract with POSCO Future M for cathode materials used in lithium iron phosphate (LFP) cells. This agreement, valued at 6 trillion KRW and spanning from 2027 to 2032, more than doubles a previous volume agreement. Additionally, Samsung SDI signed a memorandum of understanding with EcoPro BM to develop sulfide-based solid-state batteries.

Beyond cell manufacturing, Samsung SDI is expanding its focus toward energy storage systems (ESS) and specialized battery solutions to meet the power demands of AI data centers.