Korean battery manufacturers operated their factories at significantly reduced utilization rates in 2025.

They continued expanding production capacity year after year, yet utilization rates declined steadily.

LG Energy Solution’s utilization rate stood at 47.6% in 2025, down from 73.6% in 2022.

Samsung SDI’s rate fell to around 50% (from approximately 76% in 2023), while SK On’s declined to 48.7%.

This marked the first time the three major Korean players were operating at or below roughly half of their installed capacity.

In contrast, CATL ran at 96.9% utilization last year, up from 76% in 2024.

Demand for batteries remains robust globally, but regional market dynamics vary considerably.

The three Korean players had placed heavy bets on the U.S. market, with LG Energy Solution being particularly exposed.

However, several joint-venture partners scaled back or withdrew from projects, U.S. tax credit policies encountered shifts and uncertainties, and battery volume growth slowed markedly in 2025.

Europe’s EV battery market continues to expand, yet it remains highly competitive and open to players from all regions.

CATL, meanwhile, benefits from a strong domestic market in China, where EV adoption exceeds 50%.

The company shipped 661 GWh of batteries and reported a net profit of approximately $10.4 billion last year.

By comparison, the Korean players have very limited or no presence in the Chinese market.

For 2026, they are focusing on reducing capex and optimizing their existing capacity.

That said, this should not be viewed as a permanent setback.

Both the U.S. and European markets are still in their early stages of development.

Nevertheless, competition in the global battery sector is intense.