Samsung SDI shares were strong early on the 4th on news that the company signed a contract to supply energy storage systems (ESS) to U.S. Tesla.
Samsung SDI stock was trading at 344,500 won on the KOSPI market at 9:22 a.m. that day. The share price rose 6.73% (22,000 won) from the previous day. Early in the session, the stock climbed to as high as 354,500 won, marking the highest price in the past year.
With Samsung SDI logging losses for four consecutive quarters, the possibility of an ESS contract appears to have stirred investor sentiment. A media outlet the previous day, citing anonymous sources, reported that Samsung SDI agreed to supply Tesla with batteries for energy storage systems (ESS; Energy Storage System) worth about 3 trillion won.
Samsung SDI is putting weight behind its ESS business. Earlier, it said it would convert facilities of StarPlus Energy (SPE), its U.S. joint venture with Stellantis, for ESS production.
Samsung SDI said in a related inquiry disclosure response that day, "Discussions are underway, but nothing has been finalized."