LG Energy Solution swings to loss amid weak North American EV demand
Battery cells with the logo of LG Energy Solution are displayed at the company headquarters in Seoul, South Korea, April 23, 2024. REUTERS/Kim Hong-Ji
SEOUL, April 30 : South Korea's LG Energy Solution (LGES) swung to a loss on Thursday as battery demand from electric vehicle (EV) makers weakened, with automakers especially in North America limiting EV production.
LGES, which supplies Tesla, General Motors and Hyundai Motor, posted an operating loss of 208 billion won ($140 million) for the January-March period, in line with earlier guidance.
That compares with a 375 billion won profit a year earlier.
The South Korean battery maker would have made a 398 billion won operating loss without a tax credit received under the U.S. Inflation Reduction Act, according to a regulatory filing.
Here are some details:
• Revenue fell 2.5 per cent to 6.6 trillion won from a year earlier, LGES said.
• LG Energy Solution said in an earnings presentation its order backlog for 46-series cylindrical batteries used in electric vehicles continued to increase from end-2025 to end-April.
• To offset weakness in EV batteries, LGES is focusing on growing demand for energy storage systems (ESS), driven by rising electricity needs for AI data centres.
• In February, LGES said it aims to triple its ESS revenue this year from a year earlier. Nomura estimated the company's ESS revenue at about 2.8 trillion won in 2025.
• Cross-town rival Samsung SDI said on Tuesday it has seen strong momentum in ESS demand, led by data centres, driving a rise in orders from existing and new customers.
• On EV demand in Europe, Samsung SDI said major countries are reintroducing and expanding subsidies, while higher oil prices have boosted consumer interest in EVs, lifting demand, particularly in the mass-market segment.
($1 = 1,484.4000 won)
