The Ford F-150 Lightning electric pickup truck is on display at the Philadelphia Auto Show in this January 2023 file photo. AP-Yonhap

Korean battery makers are facing an increasingly unfavorable business environment this year, as the sluggish global demand for electric vehicles (EVs) led U.S. carmakers to cut production, according to securities analysts, Wednesday.

Ford Motor announced last Friday that it will halve the production of F-150 Lightning electric pickup trucks at its Michigan factory and plans to send 1,400 workers home. The electric truck has used SK On's NCM9 batteries.

Although the battery unit of SK Group explained that it has already diversified customers to reduce its reliance on a single car model, Ford's recent decision is expected to make it more difficult for the Korean firm to turn a profit this year.

"SK On's major customer already halved its annual sales target, warning of sluggish demand," Meritz Securities analyst Rho Woo-ho said. "SK On is expected to suffer a 531 billion won ($396 million) operating loss this year. It is unlikely to post an annual operating profit."

Last year, SK On reduced the production capacity of its factory in the U.S. state of Georgia. The Korean firm's joint venture with Ford is also considering postponing the operation of their joint battery plant in Kentucky, which was initially supposed to start in 2026.

Tesla electric cars charge in a snow and salt covered parking lot in Chicago, Jan. 17. AFP-Yonhap

LG Energy Solution (LGES), whose fourth-quarter operating profit fell short of market consensus, is facing a worsening outlook, as General Motors (GM), one of its major U.S. partners, began to cut the production of EVs, delaying the operation of its electric pickup truck factory in Michigan.

In 2023, the Korean firm's plan to establish a joint venture with Ford in Turkey fell through.

"This year will be tough for LGES," Hi Investment & Securities analyst Chung Won-suk said. "Depending on how it will share the U.S. tax incentives with GM and who will be elected as the next U.S. president, we may lower its medium- to long-term earnings outlook further."

Samsung SDI also seems to have experienced a year-on-year drop in its fourth-quarter operating profit, according to securities analysts. Stellantis, one of the Korean firm's U.S. partners, recently warned of worsening profits at its EV business, criticizing Tesla for sparking an "EV price-cutting bloodbath."

"Due to the slow demand for EVs, it will be difficult for Samsung SDI to avoid worsening profits during the first half of this year," KB Securities analyst Lee Chang-min said.

The U.S. government's decision to stop subsidizing batteries made with Chinese materials is seen as another negative factor for Korean battery makers, as it takes times for them to reduce their reliance on China. LGES and Samsung SDI therefore joined Hyundai Motor Group recently to urge Washington to delay the implementation of the strict rule.