Shares in South Korea's electric vehicle battery sector extended their decline, led by Posco Future M, after the company disclosed an order reduction from General Motors. In a regulatory filing submitted on Thursday, Posco Future M revealed that while it had secured an order worth $10.8 billion from General Motors in 2022, only $2 billion was ultimately executed due to plummeting lithium prices and a slowdown in the growth of the US electric vehicle market.
Morgan Stanley analyst Ryan Kim noted in a research report that the current sentiment in the EV industry is low, and this announcement is likely to continue acting as a bearish factor suppressing the sector's performance. The core concern for the market is "how many similar orders might face the same fate of being scaled back." Furthermore, NH Investment & Securities indicated that, compounded by weak US EV demand, Samsung SDI's market share in Europe is also continuously declining, and the battery manufacturer is expected to continue reporting operating losses into 2026. The institution lowered its target price for Samsung SDI from 410,000 won per share to 350,000 won, while maintaining a "Buy" rating.
Regarding individual stock performance, Posco Future M's stock price decline widened to as much as 5%, hitting its lowest point since mid-October. LG Energy Solution fell by 3.1%, LG Chem dropped 3.9%, Samsung SDI declined 4.3%, and SK Innovation decreased by 2%.
