Shares of South Korea’s Samsung SDI Co., a global leader in ever-growing lithium-ion battery market, are flying high on expectations of strong third-quarter performance due to brisk growth in rechargeable batteries of all sizes.

Samsung SDI shares on Tuesday passed a 52-week high of 255,000 won ($226.81) during the day and finished the day at 249,500 won, up 2.25 percent from the previous session.

Korean names Samsung SDI and LG Chem are leaders in the Li-ion battery market estimated to reach $139.4 billion by 2026 from $30 billion in 2017 as rechargeables are used to power from electronics to cars and commercial buildings or even industrial sites.

Demand for high capacity batteries has recently increased in the smartphone market following the use of 5G network, and rising solar power facilities of global companies like Japan’s SoftBank have generated new orders of its ESS batteries.

HI Investment & Securities in its report on Tuesday revised up the battery maker’s stock price target to 320,000 won from 290,000 won and maintained “buy” opinion, citing its rosy earnings outlook for the third quarter and beyond. It expected the company to outperform and deliver an operating profit of 210 billion won during the July-September period.

Separately, Samsung SDI reached an out-of-court settlement with Washington Attorney General over allegations that it conspired with other electronics makers including LG, Panasonic, Toshiba and Philips to fix prices of cathode-ray tube (CRT) monitors and televisions for 12 years since 1995 in Washington, the U.S., in violation of the state’s consumer protection and antitrust laws. It promised to pay $29 million in restitution to residents, according to local media.

By Lee Dong-in and Lee Ha-yeon

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