Has the Secondary Battery Bottom Passed? The Meaning of Samsung SDI's 73% Utilization Rate Rebound / The Next Game Changer After Lithium Appears | Director Han Byung-hwa

Summary

Eugene Investment & Securities research director Han Byung-hwa argues that secondary batteries have bottomed and that the recent semiconductor-driven selloff creates an accumulation window for Korean battery names. He points to ESS/AI data center demand, Samsung SDI's utilization recovery to 73%, and next platforms sodium/LMR as key supports, while also seeing long-term battery demand expanding into drones, robots, electric aircraft, and ships. He expects US and European efforts to constrain Chinese battery makers to benefit Korean companies.

• Lithium carbonate rebounded and stabilized near 150,000 yuan, which he views as healthier than another price spike.
• ESS demand from AI data centers is boosting LG Energy Solution and Samsung SDI revenues by 20-30%.
• Samsung SDI's first-half utilization rate rose to 73% from around 50%, signaling a bottom and improvement.
• Korean battery stocks should be accumulated before the expected Q4-to-next-year earnings inflection.
• Sodium and LMR battery material/component suppliers are highlighted as the next opportunity after LFP.
• Battery applications are expanding to humanoid robots, drones, electric aircraft, and ships, supporting long-term high-density battery demand.
• US and Europe are constraining Chinese battery/EV makers, which should create replacement demand for Korean battery companies.