LG Energy Solution announced its highest quarterly sales to date, propelled by strong deliveries of electric-vehicle batteries to Europe and a sharp rise in demand for energy-storage systems across North America. The company said preliminary earnings totaled 9.64 trillion won ($7.21 billion), representing a 59% increase over the same period last year and a 27.6% rise versus the prior quarter. Operating income climbed 25.7% year-over-year and more than sixfold from the previous quarter, reaching 756 billion won.
When the effect of US Inflation Reduction Act tax credits is excluded, operating profit amounted to 339.1 billion won. LG Energy Solution credited the improvement to consistent EV-battery shipments and a rapid expansion of its North American energy-storage business. Demand for mid-nickel cells in Europe stayed robust, while output rose after the restart of its joint venture with General Motors and the commencement of a partnership with Hyundai Motor Group. Shipments of cylindrical batteries also held steady.
Profitability improved as surging North American ESS shipments lowered the burden of fixed costs, while increased deliveries of mid- and lower-priced EV pouch cells lifted utilization rates at the company’s European plants. One-off compensation payments from automakers also supported earnings.
The company expects momentum to continue as North American ESS production ramps up and EV battery demand recovers in the second half.
Supply Chain and Manufacturing Expansion
According to DB Financial Investment, LG Energy Solution’s growing ESS presence in the United States aligns with Washington’s initiative to enhance grid resilience, positioning the South Korean supplier in more direct competition with firms like Tesla and Fluence Energy. Shinyoung Securities highlighted that steady deliveries of high-voltage mid-nickel and lithium-iron-phosphate batteries for Volkswagen and Renault are helping improve utilization at the company’s Polish facility.
To reinforce its North American supply chain, LG Energy Solution recently entered a four-year contract with Canada-based Elevra Lithium to obtain 240,000 tons of lithium spodumene concentrate beginning in late 2026. The concentrate will be mined in Quebec and translates to roughly 30,000 tons of lithium hydroxide, sufficient for high-performance batteries for about 700,000 electric cars.
Leave a Reply