Electric Vehicle Market Trends and Battery Companies' Outlook

Electric vehicle sales are projected to soar by 41% next year, driving stock prices and investor interest higher.

### Surge in Electric Vehicle Sales and Stock Prices
Electric vehicle sales are projected to **increase by 41% next year**, leading to raised target stock prices for LG Energy Solution and LG Chem. This surge in stock prices attracted institutional and foreign investors, contributing to a **over 30% rise in LG's stock**. Despite a negative atmosphere in the secondary battery sector and a decline in electric vehicle sales, the market is showing signs of **recovery and an upward trend in stock prices**.

### Concerns and Controversies in the Electric Vehicle Market
There are worries about the upcoming **explosion in electric vehicle sales** and manufacturers' sudden shift to **reduce sales**. Recent electric vehicle fires, including the Cheongna incident, have raised questions about the **effectiveness of Battery Management Systems (BMS)** and the role of **faulty battery cells**. The European Union's decision to enforce a **battery labeling system by 2026** aims to **increase accountability for battery manufacturers**, while South Korean companies hold a significant share of BMS patents, potentially **strengthening their competitiveness in ensuring battery safety**.

### The Impact of Battery Issues on Electric Vehicles
Lithium and similar materials' flammability has raised concerns about **electric vehicle safety**, leading to a perception of **poor sales**. The differences between Chinese and domestic batteries lie in their focus, with China prioritizing **LFP batteries** and domestic companies moving towards **high nickel batteries**. The introduction of a battery certification system aims to strengthen accountability, with most domestic electric vehicle manufacturers using **locally produced batteries**.

### Growing Public Concern Over Battery Manufacturers
Public opinion is shifting towards **questioning battery manufacturers' responsibility and product safety**. Consumers are likely to prefer **trustworthy brands**, with the standardization of products potentially increasing the demand for **domestic manufacturers**. The upcoming regulation in 2026 is expected to influence consumers in the European Union to **consider the battery used in their vehicle choices**, impacting purchasing decisions.

### Current Status of Battery Companies
Samsung SDI has formed a joint venture with GM and is performing the best among the three companies, generating **over 200 million in operating profit per quarter**. LG Energy Solution has downgraded its guidance but hinted at potential improvement, while also postponing mass production of the 4680 battery to **November**. SK1 has faced a **significant earnings shock** in the first half of the year, and all three companies are producing cylindrical and prismatic batteries, with a focus on **market positioning and raising awareness**.

### Optimistic Outlook for Ford and SK On
Ford is cautiously optimistic about achieving **operating profits by the fourth quarter**, following a challenging first half and a shift in production strategy. SK On is steadily increasing its market share amidst SK Innovation's difficulties, and a merger is expected to provide **funding and support for growth**. The primary battery production is focused on **pouch-type batteries**, with a joint venture with Ford, and there are signs of a **potential rebound in the market**, particularly for LG Chem.

### Electric Vehicle Market Trends: Insights on Stock Prices and Battery Safety
* 📈 Next year, electric vehicle sales are projected to **rise by up to 41%**, prompting LG Energy Solution to increase its target stock price from **300,000 won to 550,000 won**, while LG Chem raised its target from **350,000 won to 450,000 won**, resulting in a **stock price surge**.
* 🚗 Despite the optimistic outlook, the secondary battery sector has been facing negative news, including **postponed production of the 8046 battery** and **declining EV sales in the U.S. and Europe**, leading to concerns about a **weak market**.
* 🔥 The recent electric vehicle fire incidents have raised anxieties about battery safety, with Hyundai and Kia promoting their **Battery Management System (BMS)** to address public concerns.
* 🔋 South Korean companies hold approximately **55% of BMS-related patents**, which may enhance their competitiveness as battery safety becomes **increasingly scrutinized**.
* 🌍 The European Union's adjustment of the 2025 CO2 emission target encourages the **sale of electric vehicles**, further supporting the **bullish sentiment in the market**.
* 💡 However, there are concerns about the **sustainability of this growth**, as some analysts suggest that the current stock price increases may be **inflated without solid economic foundations**.
* 🛠 The introduction of a battery certification system in South Korea will **enhance accountability and consumer trust**, potentially favoring **domestic manufacturers over foreign ones**.
* 📊 While there is potential for further stock price increases, caution is advised as the market adjusts to recent developments, and **performance-based metrics will ultimately dictate investment decisions**.

외국인이 LG엔솔 미친듯 사는 이유. 2차전지 뜻밖의 호재가 떴다 (이영훈 이사, iM증권 / 2부)

* 출연신청 & 제휴 및 광고문의 : ssid@dpnstud.io
