South Korea’s three battery makers returned to operating profit in the second quarter for the first time in seven quarters, helped by a gradual recovery in electric vehicle demand in Europe and Asia, and stronger energy storage system demand in North America.

LG Energy Solution posted 113.3 billion won (US$79.3 million) in operating profit.

Samsung SDI reported 203.8 billion won (US$143 million), beating FnGuide’s forecast for a 70 billion won (US$49 million) loss.

SK On, under SK Innovation, posted a record 821.8 billion won (US$574 million).

Part of the rebound came from one-off items, including US advanced manufacturing production credits and compensation paid to SK On by an automaker that bought fewer batteries than agreed under contract.

Analysts also pointed to US tax credit rules for energy storage projects that will require 55% of project costs to come from foreign entities of concern (FEOCs) starting in 2026, rising to 75% by 2030.

The policy could benefit non-Chinese battery cell suppliers.

North American ESS demand has also been linked to AI data center buildouts, though the source article cited this only as a demand driver and did not quantify its effect on earnings.

One industry estimate says US data centers could consume 12% by 2028 of US electricity demand.

🔗 Source: Chosun Daily