[K-Tech] Korean battery firms pour billions into research despite idle factories

A robot arm holding a cylindrical battery Getty Images Bank — A robot arm holding a cylindrical battery/ Getty Images Bank

SEOUL, August 18 (AJP) - South Korea’s top battery makers are stepping up investments in research and development, even as their plants sit partially idle and competition from China intensifies.

In recent reports, LG Energy Solution, Samsung SDI and SK On disclosed sharply reduced factory utilization rates for the first half of 2025. LG Energy Solution’s operating rate dropped to 51.3 percent, down from 73.6 percent in 2022. Samsung SDI reported 44 percent, while SK On came in at 52.2 percent.

The slowdown reflects a sluggish recovery in global demand for electric vehicles and the mounting pressure from Chinese rivals.

The Korean trio’s combined global market share fell 5.4 percentage points from a year earlier, to 16.4 percent, according to the Seoul-based market research firm SNE Research.

Yet the companies are spending more than ever to stay ahead.

LG Energy Solution invested 620.4 billion won, or about $446 million, in R&D in the first six months of the year — its largest half-year outlay since its founding in 2020. That figure amounted to 5.2 percent of revenue, up from 3.1 percent last year.

Samsung SDI, which is targeting mass production of solid-state batteries by 2027, spent 704.4 billion won on research, slightly above last year’s level. Its R&D budget equaled 11.1 percent of sales, the highest ratio among the three Korean firms.

Still, the gap with China is widening. CATL, the world’s biggest battery maker, invested roughly $1.4 billion in R&D in the first half alone — more than the three South Korean companies combined.

To respond, the Korean manufacturers are reorganizing their research arms.

SK On rebranded its battery research institute this month to emphasize next-generation technologies. LG Energy Solution shifted its technology center from the chief executive’s office to its chief technology officer, consolidating authority under a dedicated research head.

Samsung SDI also renamed its production and equipment R&D center, underscoring its focus on solid-state and other advanced batteries.

Kim Dong-young davekim0807@ajupress.com