South Korea\'s three major battery makers posted weak first-quarter results. LG Energy Solution and Samsung SDI swung to operating losses, and SK On is also expected to remain in the red. Brokerages see the first quarter as a cyclical trough and expect a shift to profitability from the second quarter as energy storage system sales ramp up and electric-vehicle demand recovers. Key variables include the pace of ESS revenue recognition and normalization of North American production.

LG Energy Solution said on Monday it posted preliminary first-quarter revenue of 6.56 trillion won and an operating loss of 207.8 billion won. Revenue fell 2.5 percent from a year earlier and operating profit dropped 155.5 percent, turning negative after a year. Performance also worsened from the previous quarter, with revenue down 1.2 percent and operating profit down 70.3 percent. U.S. IRA tax credits totaled 189.8 billion won.