The battery industry in Korea is experiencing underutilization of manufacturing capacity due to decreased demand in the electric vehicle market. This has resulted in a decline in factory capacity utilization rates for major players such as LG Energy Solution and SK On. The slowdown in EV demand has led to reduced battery orders from automakers, impacting production volumes and profitability. Despite receiving compensation for reduced orders, the fixed costs of factory operations remain a significant burden for manufacturers. The first quarter saw a significant drop in operating profits for major battery makers, with LG Energy Solution's profits plummeting by 75.2 percent and Samsung SDI's profits falling by 28.8 percent. The decline in profitability is expected to continue due to the lag in battery prices behind metal prices, which will continue to squeeze profitability until the second quarter. However, manufacturers are optimistic about a recovery in the second half of the year as inventory adjustments end and new EV models are launched. They are closely monitoring market trends and demand, and are prepared to adapt to changing conditions to stay profitable. Looking ahead, the industry anticipates improved performance in the second half of the year. Manufacturers are focusing on adjusting their investment strategies, potentially scaling back investment where necessary, and expanding their high-performance battery lineups to maintain profitability and meet future demand.