Archive · 15 Aug 2025
South Korean Battery Makers Face Declining Factory Rates
Major South Korean battery companies are making less batteries.
This is happening because the world isn't buying as many electric cars as they thought they would.
LG Energy Solution, Samsung SDI, and SK On all have factories that are not being used as much as before.
However, SK On saw its production increase this year.
Despite these problems, the companies are trying to improve by investing in research and development.
They are trying to find new ways to make batteries and sell them.
The CEO of LG Energy Solution expects the market to improve by 2026.
South Korean battery makers saw a decline in factory utilization rates in the first half of the year.
LG Energy Solution's utilization rate dropped to 51.3% in the first half of the year.
Samsung SDI's small battery plant operation rate fell to 44% in the first half of the year.
SK On Co.'s operation rate increased to 52.2% in the first half, rebounding from the previous year.
Companies are investing in research and development despite market challenges.
- Who
- Major battery makers including LG Energy Solution, Samsung SDI, and SK On.
- What
- Battery makers in South Korea experienced a decrease in factory operation rates.
- When
- The first half of the year.
- Where
- South Korea.
- Why
- Due to waning global demand for electric vehicles.
Market Downturn
Growth Initiatives
Demand vs. Growth
Market Downturn
Decreased factory operation rates due to lower global demand for EVs.
Growth Initiatives
Increased investment in R&D to find new growth engines.
- LGES Utilization Rate (H1)
- 51.3%
- Samsung SDI Utilization Rate (Small Batteries H1)
- 44%
- SK On Utilization Rate (H1)
- 52.2%
- LGES R&D Spending (H1)
- 620.4 billion won
- Samsung SDI R&D Spending (H1)
- 704.4 billion won
- SK On R&D Spending (H1)
- 148 billion won