The global electric vehicle market is experiencing significant growth, and three major players in the battery industry – LG Energy Solution, Samsung SDI, and SK innovation – are capitalizing on this trend. In the second quarter, these companies saw impressive sales growth, with LG Energy Solution recording a 73% increase compared to the same period last year. The company achieved its highest-ever quarterly performance, generating sales of 8.7735 trillion won. Samsung SDI also experienced a boost, with sales surpassing 5 trillion won for four consecutive quarters. SK innovation, a latecomer in the industry, is expected to reduce its deficit and turn to a surplus in the second half of the year.
Despite their strong sales growth, LG Energy Solution and Samsung SDI did face some challenges. LG Energy Solution's operating profit of 460.6 billion won represented a 27.3% decrease compared to the previous quarter, and it fell short of the preliminary results announced earlier. The company attributed this to temporary cost increases and one-time provisions related to the General Motors recall process. Samsung SDI, on the other hand, reported an operating profit of 450.2 billion won in the second quarter, the highest ever for that period. The company credited this achievement to increased sales of their premium P5 product used in high-end electric vehicles.
While SK innovation's financial results for the second quarter have yet to be announced, industry estimates suggest that the company will reduce its operating loss and turn to a surplus. With improved yields and increased shipments, SK innovation is expected to achieve profitability in the second half of the year. These positive projections indicate the potential for continued growth and success in the electric vehicle battery market for all three companies.