On the 5th, the 'The Battery Conference' hosted by the Korea Battery Industry Association was held at COEX in Samseong-dong, Seoul. At the conference that day, LG Energy Solution, Samsung SDI, and SK On participated, and all three of the country's big battery companies gave presentations.

In the three sessions held under the theme of ‘Strategies and Visions for the Leap Forward of the Big Three Battery Companies,’ executives from each company shared their insights and visions on trends in the electric vehicle market and strategies for overcoming the chasm.

LG, Samsung, and SK, which belong to large conglomerates, are also suffering significant losses in the battery sector. In particular, as a relatively latecomer, Kumyang is facing a cliff in orders during the chasm period, uncertainty about its existence as a going concern is also growing, and the crisis theory is being highlighted.

■ LG Ensol, “Exploring new markets for UAM and robotics other than EV”

“I think that after the chasm, the secondary battery market will reach a crossroads of secondary growth.”
In his announcement of the ‘Business Strategy for Overcoming the Electric Vehicle Market Chasm,’ LG Energy Solution Managing Director Jeong Kyeong-hwan expressed confidence in the end of the chasm in the long term, and emphasized that the 20% annual growth rate of the electric vehicle market is also a significant high growth rate for the entire industry.

It is expected that the growth rate will rapidly increase in various applications including ESS, breaking away from the current portfolio focused on electric vehicles in secondary batteries. Managing Director Jeong said, “Customer demands are becoming more diversified and segmented, and the key is a business strategy that responds flexibly and provides cost-effective solutions.”

He also said, “In addition to EVs, we are working very hard to explore new markets such as UAM and robotics, and are preparing a software business in addition to the hardware business.” He continued, “In hardware, we are focusing on developing next-generation technologies such as solid-state batteries, next-generation products that create synergy by connecting dry electrode technology and bipolar, and in the software area, we are working on BMS, especially degradation diagnosis.”

It has been reported that these BMS technologies are attempting to promote new business opportunities through BaaS and EaaS in the future and to expand into the power service industry.

As of 2024, LG Energy Solution recorded sales of approximately KRW 25 trillion, operating profit of KRW 570 billion, and net profit of KRW 330 billion. This is a 79% decrease in net profit compared to the previous year, and in the fourth quarter, the net loss reached 411 billion won, turning into a deficit.

■ Samsung SDI, “Electric vehicles must have flawless safety”... Showing off battery robustness

“The problem is that there are many uncertainties related to batteries, so how difficult will it be for consumers to make decisions?”
At Samsung SDI, Executive Director Kwak Hyeon-yeong gave a presentation on ‘xEV battery business strategy to respond to the super cycle.’

Samsung introduced square batteries as its main product at its exhibition booth and during its presentation that day, emphasizing battery safety and reliability. It focused on explaining the form factor flexibility of square batteries, new technology for preventing heat diffusion in the event of a fire, and parts that enhance robustness, such as gas and heat dissipation belts.

This is a development strategy driven by consumer demands. Managing Director Kwak emphasized, “Samsung SDI conducts a lot of internal needs research and, as electrification is common, there is no market confidence in battery safety, so there must be complete safety when purchasing an electric vehicle.”

Samsung SDI recorded sales of approximately KRW 15.7 trillion and operating profit of approximately KRW 210 billion in its energy solutions division in its 2024 annual performance. This figure represents an 83% drop from last year's operating profit.

■ SK On “Chasm, Widening the Gap Between First and Second Runners”

“Traditional battery manufacturers have achieved overall corporate growth through customer acquisition, securing global sites, and technology development based on economies of scale.”
SK On Vice President Kim Sang-jin mentioned the gap between early and late entrants caused by the EV market trends and the special nature of the chasm environment in his presentation on 'AI-led battery technology innovation.'

SK On has grown to be among the top 5 global companies in terms of size, securing many global OEMs and production sites. These advances by the leaders are widening the gap with latecomers due to △mass production of next-generation products △customer trust △differences in R&D resources.

“Later entrants are showing slow growth and elimination due to limited production lines, low brand awareness, and insufficient R&D resources,” said Vice President Kim. “The chasm environment could further widen this gap.”

In SK Innovation's performance announcement released on the 28th, SK On, the battery division, achieved sales of KRW 6.26 trillion in 2024, but recorded an operating loss of KRW 1.1 trillion. The operating loss for the fourth quarter was 311 billion won, turning into a quarterly deficit despite increased sales and sales revenue.

■ Geumyang, deficit increases for 3 consecutive years... Gap between first and second movers becomes real
Recently, Kumyang was automatically removed from KOSPI 200 due to being designated as a management stock due to unfair disclosure corporations. The current stock price is in the early 13,000 won range as of the 7th, down more than 90% from the high of 190,000 won in July 2023.

Kumyang, which received an assessment of uncertainty in its ability to continue as a going concern in its audit report from Samil Accounting Corporation last year, is often cited as a crisis due to its continued chasm situation and internal and external negative factors.

In its recent performance provisional disclosure, Kumyang announced that it would record sales of KRW 153.7 billion, an operating loss of KRW 54.5 billion, and a net loss of KRW 199.8 billion in 2024. This is a net loss that has been continuously increasing since 2022, and the loss has increased by more than three times following the net loss of KRW 33.3 billion in 2022 and KRW 60.4 billion in 2023.

In such a domestic and international crisis situation, the electric car chasm conditions are turning unfavorable for Kumyang. As SK On Vice President Kim Sang-jin claims, the chasm is a factor that is widening the gap between the early and late entrants.

Kumyang has a single cylindrical battery portfolio, making it difficult to respond to square and pouch-type form factors, and its contact with large customers is also at a disadvantage compared to the previous Big 3. However, it can be said positively that the company is accumulating actual supply performance through small-scale contracts such as the recent supply contract for electric buses and the distribution supply contract with Nanotech Energy in the United States.

Meanwhile, at the recently held InterBattery 2025, in a VIP tour attended by government officials including the Minister of Trade, Industry and Energy, members of the National Assembly's Industry, Energy and Social Affairs Committee, and battery officials, major battery companies such as SK On, LG Energy Solution, Samsung SDI, and Ecopro were included in the tour course, while Geumyang was not included in the VIP tour for the second consecutive year.