Seoul: LG Energy Solution Ltd., South Korea's leading battery maker, has reported a decline in its plant utilization rate for the first half of the year for the fourth consecutive year, primarily due to weak sales in China.
According to Yonhap News Agency, the company's report revealed that LG Energy Solution's domestic and overseas production capacity in terms of value was estimated at 20.1 trillion won (US$14.5 billion) during the January-June period. The average plant capacity utilization rate was recorded at 51.3 percent, marking a decrease from 57.8 percent a year earlier. This downward trend follows previous rates of 73.6 percent in 2022 and 69.3 percent in 2023.
The report further highlighted a decline in the average price of LG Energy Solution's small batteries, which came to US$1.1 in the first half, down from US$1.89 in 2023. Additionally, sales in China were reported at 2.2 trillion won for the same period, reflecting a decrease of 24 percent compared to the previous year.
Kim Dong-myung, the CEO of LG Energy Solution, received a paycheck of 802 million won in the first half of the year, as indicated in the company's report.