A panoramic view of LG Energy Solution’s booth at InterBattery 2025, held at COEX in Seoul. (Image courtesy of LG Energy Solution)
SEOUL, Aug. 16 (Korea Bizwire) — South Korea’s three major battery manufacturers — LG Energy Solution, Samsung SDI, and SK On — are grappling with declining factory utilization rates, reflecting the broader global slowdown in electric vehicle (EV) demand known as the “EV chasm.”
According to semiannual filings released on August 15, LG Energy Solution reported a first-half global plant utilization rate of just 51.3%, continuing a downward trend from 73.6% in 2022 and 69.3% in 2023. The company’s total production capacity now stands at 20.2 trillion won.
Samsung SDI saw its small battery utilization drop from 58% in 2023 to 44% in the first half of 2025. While figures for its key mid-to-large battery segment were not disclosed, analysts suggest a similar decline.
SK On showed modest recovery, with utilization rebounding to 52.2% in the first half of 2025 after plunging to 43.6% last year, down from 87.7% in 2023. The company produced 85.6 million cells in the first half, compared to 121.5 million in all of 2024.
SK Battery America (Image courtesy of SK On)
The weakening EV market is also reflected in ballooning debt. LG Energy Solution’s borrowings surged by over 5.4 trillion won in six months to reach 20.9 trillion won — the steepest increase among the three. SK On’s debt rose to 16.8 trillion won, while Samsung SDI slightly reduced its debt to 11.4 trillion won.
Despite the downturn, all three firms maintained — or even increased — investment in research and development.
LG Energy Solution allocated 620.4 billion won to R&D in the first half, with R&D spending rising to 5.2% of revenue, up from 4.2% in 2024. Samsung SDI spent 704.4 billion won — 11.1% of its revenue — up from 7.8% last year. SK On’s R&D investment dipped slightly to 148 billion won, accounting for just 0.52% of revenue.
In terms of executive compensation, LG Energy Solution CEO Kim Dong-myung topped the list with 802 million won in salary for the first half. Samsung SDI CEO Choi Ju-sun followed with 744 million won, and SK On CEO Lee Seok-hee earned 560 million won.
Kevin Lee (kevinlee@koreabizwire.com)
