The 2024 performance of major domestic battery companies is becoming clear. The performance report card, showing a 70-80% decrease in operating profit and a turn to deficit compared to the previous year, clearly shows the slump in the electric vehicle and battery markets.

Four domestic battery companies, LG Energy Solution, Samsung SDI, EcoPro, and Kumyang, recently disclosed their performance through provisional performance disclosures.

LG Energy Solution announced on the 24th through its provisional performance disclosure that it recorded annual sales of KRW 25.6196 trillion, operating profit of KRW 575.4 billion, and net profit of KRW 338.6 billion in 2024. This means that operating profit and net profit fell 73% and 79% year-on-year, respectively, and operating loss and net loss for the fourth quarter were KRW 304.2 billion and KRW 411 billion, respectively, raising the alarm of a deficit turn.

Samsung SDI also disclosed its 2024 annual performance, which was verified through the submission of an audit report on the 21st. Comparing only the performance of the Energy Solutions Division, it recorded sales of KRW 15.6912 trillion and operating profit of KRW 217.6 billion. This represents an 83% drop compared to last year's operating profit of 1.3424 trillion won.

EcoPro announced in its provisional performance announcement on the 11th that it recorded annual sales of KRW 3.1102 trillion, operating loss of KRW 314.5 billion, and net loss of KRW 279.8 billion in 2024. This indicates that it has turned into a deficit on an annual basis.

Kumyang has not yet disclosed its performance for the fourth quarter of last year, and according to its performance until the third quarter announced in November of last year, it recorded sales of KRW 116.5 billion, operating loss of KRW 39.2 billion, and net loss of KRW 160.9 billion. If it does not show a net profit of more than KRW 161 billion in the fourth quarter, Kumyang is expected to record a net loss for the third consecutive year.

The global battery market has been dominated by Chinese companies, and the slump of Korean battery companies has been noticeable recently. While the market share of six Chinese companies, including CATL and BYD, is 65.5%, the market share of three domestic companies, including LG Energy Solution, Samsung SDI, and SK On, is only 20.2%, showing a large gap.