Tesla battery supplier LG Energy, South Korean peers take hit from material costs

Investments in higher capacity also weigh on sector's earnings

20220804N LG and SK logos

South Korean electric battery manufacturers LG Energy Solution and SK Innovation reported depressed earnings for the second quarter. © Reuters

KOTARO HOSOKAWA, Nikkei staff writer

SEOUL -- Higher material prices have taken some of the spark out of earnings at South Korea's top makers of electric vehicle batteries.

Tesla supplier LG Energy Solution, the second-largest battery supplier in the world, saw operating profit plunge 73% on the year to 196 billion won ($149 million) during the three months ended June. Quarterly revenue dipped 1% to 5.07 trillion won.

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