South Korea's major battery companies are shifting their production capacity towards the energy storage sector.

As the market share of major battery companies in South Korea continues to decline in the global power battery market, their profitability also continues to weaken. In the midst of the investment boom in the AI field, some production capacity is beginning to shift towards the energy storage sector. In the fourth quarter of 2025, South Korea's major battery companies LG Energy, Samsung SDI, and SK On all reported operating losses. LG Energy reported a loss of 122 billion Korean won in the fourth quarter of 2025, and if the tax exemptions for cutting-edge manufacturing provided by the United States are excluded, the loss will further increase to 454.8 billion Korean won. During the same period, Samsung SDI is expected to have a loss of around 300 billion won, and SK On is facing an estimated loss of 200 billion won. Influenced by the contraction of the ternary battery market, LG Energy canceled an electric vehicle battery supply contract worth approximately 13.5 trillion Korean won in December 2025, while SK On also terminated a joint venture battery factory project with Ford in the United States.