[Market Focus] Secondary Battery Stocks Extend Losses Amid U.S. IRA Tax Credit Termination Fears, Hitting New Lows

Shares of secondary battery companies have continued to decline, repeatedly hitting new lows, amid growing concerns over the potential early termination of tax credits under the U.S. Inflation Reduction Act (IRA).

As of 9:27 a.m. on May 22, LG Energy Solution was trading at 274,000 won on the Korea Exchange, down 3,500 won (1.26%) from the previous day. During the session, the price fell to as low as 273,000 won, marking a new 52-week low. Samsung SDI, down 0.93%, also set a new 52-week low by dropping to 160,000 won during intraday trading. POSCO Future M was down 1.34%, reaching a new 52-week low of 102,400 won during the session. Other stocks such as Ecopro BM (-1.93%), Ecopro (-1.71%), L&F (-3.49%), LG Chem (-0.85%), and SK Innovation (-1.66%) also declined, setting new 52-week lows during intraday trading.

The weakness in secondary battery stocks has persisted since May 20, when it was reported that the U.S. Republican leadership had reached a tentative agreement to eliminate all IRA tax credits by 2028.