In 2026, South Korea’s major battery makers—LG Energy Solution, Samsung SDI, and SK On—are facing widespread earnings pressure, exhibiting a trend of rising revenues but shrinking profits. LG Energy Solution forecasts second-quarter revenue to rise 24.8% year-over-year to KRW 7.6 trillion, yet its operating profit is expected to plunge 77% compared to the same period last year. Although Samsung SDI reported higher revenue, it is projected to remain in the red, prompting analysts to lower its target price. SK On, which has been unprofitable since its inception, has yet to release its latest financial results, and market sentiment toward its outlook remains pessimistic. Amid growing global EV battery installations from January to May 2026, the combined market share of these three Korean firms stood at just 13.8%, far below the 72.6% held collectively by China’s top seven battery manufacturers. Specifically, LG Energy Solution’s installation growth lagged behind the industry average, SK On saw a decline in installed capacity, and Samsung SDI suffered the steepest drop, falling out of the global top ten rankings. In terms of capacity utilization, both LG Energy Solution and SK On reported year-over-year declines in Q1 2026, while Samsung SDI’s utilization rate stood at only 65%. To address these challenges, all three companies are accelerating their strategic shift toward energy storage systems (ESS). LG Energy Solution has secured multiple ESS orders and plans to expand its global ESS production capacity by year-end; Samsung SDI is retooling production lines to supply ESS products to Tesla; and SK On has launched its own ESS brand, setting targets for mass production and order acquisition. However, Korean battery makers have historically focused on automotive lithium-ion batteries. In contrast, the ESS market is dominated by Chinese firms using lithium iron phosphate (LFP) chemistry—a technology Korean companies only began ramping up for mass production in 2026, potentially missing the critical window of market opportunity.