Seoul, Aug 15
Major battery makers reported a continued decrease in factory utilisation rates in the first half due to waning global demand for electric vehicles (EVs), data showed on Friday.
In its semiannual report, industry leader LG Energy Solution Ltd. (LGES) said its production capacity stood at 20.1 trillion won (US$14.5 billion) in the first six months of this year, with an average plant capacity utilisation rate of 51.3 percent.
The figure has steadily declined from 73.6 percent in 2022 to 69.3 percent in 2023 and 57.8 percent last year, reports news agency.
Samsung SDI Co.'s operation rate of plants for small batteries fell to 44 percent in the January-June period from 58 percent last year, according to the company's semiannual report. Although the report does not disclose rates for its plants for medium-sized and large batteries, their utilization rates are also assumed to have declined.
SK On Co.'s operation rate, in contrast, rebounded to 52.2 percent in the first half from 43.6 percent last year, which had marked a steep drop from 87.7 percent in 2023.
The sluggish performance of Korean battery companies can be attributed to the prolonged EV chasm, which is expected to continue throughout this year.