SEOUL— South Korea’s leading battery manufacturers saw factory utilization rates fall in the first half of the year amid slowing global demand for electric vehicles (EVs), according to company filings released Friday.
Industry leader LG Energy Solution Ltd. (LGES) reported production capacity worth 20.1 trillion won (US$14.5 billion) in the first six months, with an average plant utilization rate of 51.3%. That figure has steadily dropped from 73.6% in 2022 to 69.3% in 2023 and 57.8% last year, Yonhap News Agency reported.
Samsung SDI Co.’s utilization rate for small battery plants fell to 44% in January–June from 58% a year earlier. While the company did not disclose rates for its medium- and large-battery plants, those figures are also believed to have declined.
SK On Co., however, saw a rebound, with utilization rising to 52.2% in the first half from 43.6% last year, though that still marked a sharp drop from 87.7% in 2023.
The slowdown reflects a prolonged slump in EV demand — often referred to as the “EV chasm” — which analysts expect to persist through the rest of the year. LGES CEO Kim Dong-myung has forecast that global battery demand will bottom out in the first half before recovering as early as 2026.
Despite the weak market, Korean battery makers are continuing to invest heavily in research and development (R&D) to secure new growth engines.
LGES allocated 620.4 billion won to R&D in the first half, equivalent to 5.2% of revenue, up from 4.2% last year and 3.1% in 2023. Samsung SDI boosted its R&D spending to 704.4 billion won, or 11.1% of sales, compared with 7.8% in 2024. SK On’s R&D investment was significantly lower, at 148 billion won — just 0.52% of sales for the period. (Source: IANS)
