Daiwa Lifts Samsung SDI Target Price to ₩600,000, Citing ESS Growth Over EV Slowdown

Daiwa Capital has raised Samsung SDI's target price to ₩600,000, shifting focus from the temporary slowdown in the EV market to the long-term growth potential of its Energy Storage System (ESS) business.

This positive outlook is supported by a major U.S. ESS supply contract, a plan to sell assets for future investment capital, and favorable U.S. policies that benefit non-Chinese battery suppliers.

As a result, the market is increasingly valuing Samsung SDI not just as an EV battery maker, but as a comprehensive energy solutions provider with strong technological advantages, including AI-based safety features.

Daiwa Capital recently raised its target price for Samsung SDI, signaling a major shift in how the market views the company.

This new valuation is less about the current slowdown in the electric vehicle (EV) market and more about the massive long-term potential of Samsung SDI's Energy Storage System (ESS) business. The core reasons for this optimism can be broken down into three key areas.

First is the explosive growth in the ESS sector. The clearest evidence of this is a massive ₩1.5 trillion contract to supply ESS batteries to a U.S. energy company from 2026 to 2029. This single deal provides years of predictable revenue, giving investors and analysts confidence to look beyond temporary EV market softness. It proves that Samsung SDI is capturing real, large-scale demand in a rapidly expanding market.

Second, the company is making smart financial moves and benefiting from favorable policies. Samsung SDI announced it is considering selling part of its stake in Samsung Display to fund investments in ESS, LFP batteries, and next-generation solid-state technology. This plan was well-received because it allows the company to finance its ambitious growth without taking on debt or diluting shareholder value. Furthermore, U.S. policies like the FEOC (Foreign Entity of Concern) rules are creating a protected market for non-Chinese suppliers. These rules, combined with tariffs, give Samsung SDI a significant competitive advantage in North America.

Third is technological leadership. At the recent InterBattery 2026 conference, Samsung SDI unveiled 'Samsung Battery Intelligence,' an AI-based software designed to prevent ESS fires, and showcased a sample of its all-solid-state battery. These innovations reinforce the company's reputation for safety and premium quality—qualities that are highly sought after by U.S. utilities and industrial clients. This tech moat helps justify a higher valuation compared to competitors.

In summary, the market is beginning to see Samsung SDI not just as an EV battery maker, but as a comprehensive energy solutions provider poised to lead in the global energy transition. This re-rating is backed by a strong order book, strategic funding plans, and a clear technological edge.

ESS (Energy Storage System): A system that captures energy and stores it for later use. It's crucial for stabilizing power grids that use renewable energy sources like solar and wind.
LFP (Lithium Iron Phosphate) Battery: A type of lithium-ion battery known for its safety, long lifespan, and lower cost compared to other chemistries, making it ideal for ESS applications.
FEOC (Foreign Entity of Concern): A U.S. government designation that restricts companies from certain countries (like China) from participating in U.S. clean energy supply chains and receiving federal tax credits.

Daiwa Lifts Samsung SDI Target Price to ₩600,000, Citing ESS Growth Over EV Slowdown

This positive outlook is supported by a major U.S. ESS supply contract, a plan to sell assets for future investment capital, and favorable U.S. policies that benefit non-Chinese battery suppliers.

Daiwa Capital recently raised its target price for Samsung SDI, signaling a major shift in how the market views the company.

ESS (Energy Storage System): A system that captures energy and stores it for later use. It's crucial for stabilizing power grids that use renewable energy sources like solar and wind.
LFP (Lithium Iron Phosphate) Battery: A type of lithium-ion battery known for its safety, long lifespan, and lower cost compared to other chemistries, making it ideal for ESS applications.
FEOC (Foreign Entity of Concern): A U.S. government designation that restricts companies from certain countries (like China) from participating in U.S. clean energy supply chains and receiving federal tax credits.