LG Energy Solution, SK On, Samsung SDI Post Double-Digit Negative Grow…

EV BATTERY MARKET IS COOLED DOWN. BUT CHINESS COMPANY IS GLOWING UP. / PHOTO BY GEMINI

A deep chill has swept across the global electric vehicle (EV) market. Amid a worldwide slowdown in demand, both the U.S. and Chinese markets have fallen into simultaneous downturns, pushing the overall market into a cooling phase. South Korea’s three major battery makers — LG Energy Solution, SK On, and Samsung SDI — are struggling, each posting double-digit negative growth.

According to recent EV market data analyzed by Hana Securities, global EV (BEV+PHEV) sales in January totaled 1.166 million units, down 4% year-on-year.

The regional breakdown paints a more severe picture. The United States saw sales plunge 31% to just 77,000 units, while China — the world’s largest EV market — also shrank 20% to 597,000 units, underscoring widespread weakness.

In contrast, Europe is charting a different course. January sales in Europe reached 307,000 units, marking a sharp 20% increase from a year earlier. Europe’s market share rose to 31.9%, rapidly closing in on China’s 38.6%. Analysts attribute the growth to continued government subsidies and strengthened carbon regulations across the region. During the same period, hybrid vehicle sales increased 8% to 879,000 units, reaffirming their position as a transitional step toward full electrification.

The battery industry’s performance diverged sharply. Global battery shipments rose 11% to 71.9 GWh in January, but Chinese companies captured most of the growth. CATL expanded 29%, further solidifying its dominant position, while CALB recorded explosive growth of 52%.

Korean companies, however, faced painful setbacks. LG Energy Solution (-15%), SK On (-21%), and Samsung SDI (-24%) all posted double-digit declines. Aggressive pricing by Chinese competitors has eroded both profitability and market share.

Europe remains their last stronghold. European battery shipments rose 13% year-on-year to 16.6 GWh in January. The three Korean firms maintained a combined market share in the 30% range. LG Energy Solution (2.7 GWh) and Samsung SDI (1.5 GWh) achieved modest growth, supported by Europe’s strategic push to secure non-Chinese battery supply — a move seen as forming a defensive line for Korean manufacturers.

Battery shipments in the U.S. plunged 27% year-on-year, though industry insiders say the decline had largely been anticipated.

Amid the gloom, South Korean automakers Hyundai Motor Company and Kia Corporation stood out. Hybrid vehicle sales surged 46%, driving overall eco-friendly vehicle performance. EV sales also rose 11%, bolstered by new models such as the Kia EV3 and Kia EV9.

The battery industry views 2026 as a critical turning point. If Korean firms can defend their roughly 30% share in Europe and endure the downturn, they may be well-positioned to fully benefit when the market rebounds.