South Korean tech and battery firms see growth from AI and ESS demand

South Korean technology and battery manufacturers are seeing positive momentum driven by high-growth sectors. Samsung SDI and other battery makers, including LG Energy Solution and SK Innovation, have experienced stock price increases. This trend is attributed to the expansion of the North American Energy Storage System (ESS) market, fueled by increased investment in AI data centers which drives demand for power storage.

LG Energy Solution reported third-quarter revenue of 9.64 trillion won and an operating profit of 756 billion won, with ESS business expansion cited as a key driver. Samsung SDI is also focusing on ESS as a primary growth engine, leveraging its prismatic battery technology and expanding its presence in the U.S. market through LFP battery production and high-output products.

Separately, Samsung Electro-Mechanics is projected to see strong third-quarter results. Analysts at DS Investment & Securities raised their target price for the company, citing expected revenue of 3.87 trillion won and an operating profit of 651.6 billion won. Growth is expected from high-value Multi-Layer Ceramic Capacitors (MLCC) and Flip Chip Ball Grid Array (FC-BGA) substrate investments, as the company secures long-term supply contracts and benefits from a supplier-dominant market environment.