Factory utilization rates at three leading domestic battery makers have fallen below 50% after peaking during the electric vehicle (EV) ‘super cycle’ of 2021–2022. Industry reports attribute the decline to slower EV demand growth, increased competition in Europe, and rapid capacity expansion.
According to LG Energy Solution’s latest business report, its utilization rate slipped from 72.7% in 2021 and 73.6% in 2022 to 47.6% last year. Samsung SDI’s Energy Solution division saw utilization drop from approximately 76% in 2023 to 58% in 2024, followed by a fall to around 50%. SK On’s factory utilization plunged from 87.7% in 2023 to 43.6% in 2024.
During the 2021–2022 super cycle, surging EV sales drove battery orders and kept utilization rates in the 70% range. As global EV market growth has slowed, automakers have scaled back production plans and reduced battery orders. At the same time, battery companies have brought new plants online through joint ventures—mainly in North America and Europe—pushing total capacity higher than near-term demand can absorb.
LG Energy Solution operates its Ultium Cells plants in Ohio and Tennessee in partnership with General Motors. SK On runs a Georgia plant and, in collaboration with Ford, divides operations between a Tennessee facility under SK On management and a Kentucky factory under Ford. Samsung SDI recently expanded its Göd facility in Hungary and is constructing a joint-venture factory with Stellantis in Indiana.
Analysts note that initial ramp-up periods at new factories tend to yield low utilization rates, pulling down overall averages. Market research firm SNE Research reports the three companies’ combined global EV battery market share fell from 18.4% in 2024 to 15.4% in 2025, and declined further to 12.0% as of January.
A securities-industry battery analyst commented that slower European EV growth and intensified competition from Chinese manufacturers have eroded market share and utilization at facilities in Hungary and Poland. North American plants remain in early ramp-up phases, even as some lines are repurposed for energy-storage systems to offset weaker EV demand.
Presentations at InterBattery 2026 highlighted a strategic shift toward energy-storage solutions as a new growth driver. The analyst added that, given EVs’ long-term growth outlook, this past year may mark the utilization trough, with a gradual recovery expected in the second half of the year.
Source: Business Korea
