Samsung SDI Bets Big on Solid-State Batteries While Backing Its Supply Chain

South Korea's battery champion is taking a two-pronged approach to navigate a cooling EV market: pouring record sums into next-generation technology while securing its supplier network through state-backed credit. Samsung SDI is betting that aggressive R&D spending and supply chain stability will give it an edge over rivals like LG Energy Solution and SK On.

The company’s R&D budget jumped nearly 22% in the first quarter of 2026, reaching 435 billion won — more than any domestic competitor spent in the same period. The funds are overwhelmingly directed toward solid-state batteries, with mass production targeted for 2027. That timeline puts Samsung SDI on an ambitious path to leapfrog current lithium-ion technology just as global EV demand softens.

To underpin that strategy, the company is also locking in financial guarantees for its overseas plants. A total of $3.9 billion has been set aside for facilities in the United States and Hungary, with particular focus on the StarPlus Energy joint venture in Indiana. At home, Samsung SDI is tapping into a government-led financing program run by the Export-Import Bank of Korea, which offers small and medium-sized suppliers interest rate savings of up to 2.4% and easier access to credit. So far, 11.5 trillion won have flowed to partner companies under the initiative, helping to insulate the entire ecosystem from market volatility.

Should investors sell immediately? Or is it worth buying Samsung SDI?

The stock market has delivered a mixed verdict on these moves. Samsung SDI shares fell 8% on Tuesday to €81.40, retreating from a months-long rally. On the following trading day, they slipped another 5.88% to €83.20. Despite the back-to-back declines, the equity still boasts a year-to-date advance of between 107% and 111%, depending on the measurement date — a reflection of the strong performance built up earlier in 2026.

While the solid-state push grabs headlines, the company is also scaling up its stationary energy storage business, targeting revenue growth of more than 50% year-over-year. Its prismatic battery cells, initially designed for premium electric vehicles, are now being developed for robotics and flying taxis. The next operational milestone comes in the second half of 2026, when the integrated “SBB 2.0” battery solution is slated to enter mass production.

For Samsung SDI, the challenge is to convert the planning security gained from these dual investments — state-backed supplier financing and internal R&D — into production efficiency. With rivals also scrambling to lock in raw materials and new chemistries, the race to dominate both solid-state and advanced lithium-ion technologies is heating up across the Korean battery sector.

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