LG Energy Solution reported a 152 percent jump in operating profit, reaching 492.2 billion won, driven by robust North American demand. This marks the company’s first profitable quarter in over a year without relying on U.S. Inflation Reduction Act subsidies. While profit surged, total sales revenue dropped by 9.7 percent to 5.6 trillion won. The sales dip came from reduced orders outside North America. Automakers pulled back due to global policy uncertainty, especially U.S. tariff shifts.
The battery profit surge is largely credited to stable electric vehicle and energy storage system demand in the U.S. and Canada. CFO Kim Chang-sil stated that countries are now prioritizing local battery supply chains. As a result, battery makers with a strong domestic presence—like LG Energy Solution—have gained a competitive edge. Kim also mentioned that the company leads in building North America’s first ESS battery production facility. This positions them to offset EV battery slowdowns with increased ESS deployment.
LG Energy Solution recently began producing LFP-based long pouch cells for ESS at its Michigan plant. The company already secured orders above 50 gigawatt-hours from global energy clients. Part of its EV manufacturing capacity will shift toward ESS production. The firm targets a 17-gigawatt-hour output this year. By 2026, it aims to expand that figure to 30 gigawatt-hours.
The battery profit surge also reflects changing U.S. regulations under the One Big Beautiful Bills Act. South Korea expects a temporary EV market slowdown. Yet, new policies banning Chinese-linked firms from U.S. tax credits could help Korean suppliers. Business strategy head Lee Yeon-hee said the relaxed PFE rules offer flexibility. LG can now optimize costs while still qualifying for incentives.
Moreover, LG plans to accelerate battery cell development for affordable electric vehicles. The firm is preparing high-voltage mid-nickel and LFP cells at its Poland facility. These products aim to strengthen price competitiveness and introduce faster charging. Advanced methods like dry electrode coating will cut costs further. This aligns with their strategy to serve Europe’s growing budget EV market.
In conclusion, in North America, LG Energy Solution is partnering with General Motors on advanced battery innovations. Their new lithium manganese-rich prismatic cells promise 30 percent higher energy density than LFP. Mass production will begin at the Tennessee joint venture’s second phase. The Ohio-based first phase will handle current NMC battery production. These steps solidify LG’s role in the U.S. EV transition.
