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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] Stocks of electric vehicle (EV) related companies saw a sharp decline, with many hitting 52-week lows, after news emerged that Donald Trump’s presidential transition team is considering reducing support for electric vehicles and imposing tariffs on battery materials.
On November 17th, shares of LG Energy Solution dropped by 3.9% to close at 38,250 KRW, while POSCO Future M saw a steeper decline of 8.2%, ending the day at 15,260 KRW. Samsung SDI also fell by 6.1%.
In the KOSDAQ market, stocks of secondary battery-related companies suffered even larger losses. EcoPro BM dropped by 7.8%, closing at 118,200 KRW, marking a 52-week low and its lowest level since January of the previous year. Enchem also fell by 3.2%.
Reuters reported on November 16th (local time) that according to an internal document from Trump’s transition team, the incoming administration plans to impose tariffs on all battery materials globally in an effort to encourage domestic production in the U.S.
The stock prices of these companies have returned to levels seen before the 2022 secondary battery rally, and despite these sharp declines, the companies still face high valuation pressures due to underwhelming financial performance.
For LG Energy Solution, the consensus for its Q4 operating loss is estimated at 1.128 trillion KRW, with some analysts predicting that the loss could be even greater than expected.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
