LG Energy Solution, South Korea’s largest battery manufacturer, reported a 77% year-on-year collapse in second-quarter operating profit, falling to 113 billion won ($73.91 million).
The steep decline reflects continued weakness in electric vehicle demand, which has eroded pricing power and utilization rates for major cell producers.
The results highlight the fragility of the EV supply chain as growth slows globally.
Investors are reassessing valuations for battery makers as the sector shifts from rapid expansion to a phase of margin compression and overcapacity concerns.
The drop in profitability signals that the industry’s earlier boom is giving way to a more competitive and less lucrative environment.
This development adds to growing pressure on the broader energy transition narrative.