The industry has slowed sharply in line with stalled EV sales.
SK Innovation said Wednesday its battery unit SK On recorded fourth-quarter revenue of 1.46 trillion won ($1.03 billion) with an operating loss of 441.4 billion won. For 2025, SK On posted revenue of 6.98 trillion won and an operating loss of 931.9 billion won.
LG Energy Solution on the previous day reported fourth-quarter revenue of 6.14 trillion won, up 7.7 percent from the previous quarter, but swung to an operating loss of 122 billion won. For the full year, the company posted operating profit of 1.35 trillion won, up 134 percent, though revenue fell 7.6 percent to 23.67 trillion won.
The downturn has been exacerbated by a string of canceled EV battery deals. By the end of last year, scrapped contracts totaled more than 17 trillion won ($11.86 billion). Ford Motor in December abandoned a 9.6 trillion won battery supply agreement with LG Energy Solution, while cathode materials maker L&F saw its Tesla contract shrink from 3.8 trillion won to just 9.73 million won — effectively a cancellation.
With the EV pipeline thinning, Korean battery makers are increasingly looking beyond automobiles — and upward.
The global space battery market is projected to grow from $3.99 billion in 2025 to $5.61 billion by 2030, a compound annual growth rate of about 7 percent, according to The Business Research Company. Growth is being driven by a surge in satellite launches: more than 4,500 spacecraft reached orbit last year, roughly 60 percent more than the approximately 2,800 launches recorded in 2024, as private operators such as SpaceX and Blue Origin race to build satellite constellations.
LG Energy Solution has supplied lithium-ion cells for NASA spacesuits since 2016 and began work in 2024 on batteries for SpaceX spacecraft. Last November, it partnered with U.S. startup South 8 Technologies to develop batteries capable of operating in cryogenic conditions for lunar rovers and unmanned exploration vehicles.
"The liquefied gas electrolyte technology fundamentally addresses long-standing issues of battery performance degradation in extreme cold environments," said Kim Je-young, chief technology officer of LG Energy Solution. "We anticipate this technology will unlock new possibilities for products and applications, including space."
Samsung SDI has established a technical cooperation framework with CAMX Power, which holds a satellite battery supply contract with the U.S. Space Force. SK On is preparing for space-grade applications through its solid-state battery pilot plant and collaboration with U.S. developer Solid Power.
Humanoid opportunity
Humanoid robotics represents an even larger potential market. Morgan Stanley estimates the sector could exceed $5 trillion by 2040.
Although batteries typically account for only about 0.5 percent of a humanoid robot's total cost, that still translates into a roughly $25 billion opportunity, excluding replacement batteries, maintenance and energy services.
With CES 2026 highlighting humanoids as key embodiments of physical AI, Korean battery firms have stepped up efforts to secure early positions.
LG Energy Solution has reportedly received battery supply requests from multiple Chinese humanoid robot developers and plans to begin mass production this year. Tesla, which is developing its Optimus humanoid series, is expected to receive tens of thousands of ultra-high-nickel battery cells — with nickel content exceeding 95 percent — from LG.
Samsung SDI is in supply discussions with Boston Dynamics and has partnered with cathode producer Ecopro BM, electrolyte supplier Soulbrain and separator maker W-Scope for humanoid-focused battery development.
Technical requirements favor Korean manufacturers. Unlike EVs, which can accommodate large battery packs across vehicle floors, humanoids have only about 5 percent of that space — typically confined to the chest and back — making energy density paramount.
Chinese battery giants CATL and BYD dominate the global EV market with a combined share of roughly 55 percent, built largely on cost-efficient lithium iron phosphate (LFP) technology. But LFP cells lack the energy density required for sustained humanoid operation; industry sources say robots powered by LFP often struggle to run for even one hour.
As a result, even Chinese humanoid developers are opting for higher-density alternatives. Shenzhen-based Engine AI uses solid-state batteries in some versions of its T800 robot, while Unitree Robotics deploys lithium-ion polymer batteries instead of LFP to reduce weight and improve safety.
"Humanoids operate in close proximity to humans, and any malfunction could cause serious accidents, particularly in factories," Kang said. "Safety is the top priority. Since batteries account for a relatively small share of total robot costs, using high-spec batteries is actually more economical and reduces concerns over degradation."
Korean battery makers have spent years refining high-nickel ternary chemistries. L&F became the first company to mass-produce ultra-high-nickel cathode materials in the second half of 2025, with Ecopro BM preparing to follow. CATL and BYD, by contrast, remain focused on LFP and mid-nickel chemistries with nickel content of about 50 to 70 percent.
Chinese manufacturers are accelerating efforts to close the gap. CATL invested last year in Beijing-based humanoid developer Galbot and has begun deploying its Xiaomo robot — developed by affiliated startup Spirit AI — on battery production lines in Henan province.
In space, CATL and China Aviation Lithium Battery Technology are reportedly developing batteries for domestic satellite programs under the China National Space Administration, according to Coherent Market Insights. Their penetration into Western aerospace supply chains, however, remains limited.
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