LG Energy Reports Q3 Loss Amid EV Market Slowdown

LG Energy Solution Ltd. announced a net loss of 296.9 billion won ($221.3 million) for the third quarter, a stark contrast to the net profit of 536.1 billion won recorded in the same period last year.

The company attributed this downturn to a prolonged slowdown in the electric vehicle (EV) market, which has posed challenges for the industry. Despite the loss, LG Energy's operating profit rose 25.7% to 756 billion won, supported by increased shipments of energy storage systems (ESS) to North America and sales of lower-priced pouch-type batteries in Europe.

Sales surged 59% year-on-year to 9.64 trillion won, bolstered by tax credits from the U.S. Inflation Reduction Act. However, the overall net loss for the January-September period reached 1.57 trillion won, compared to a profit of 853.3 billion won a year earlier.

As demand for ESS batteries grows, LG Energy plans to expand its lithium iron phosphate battery production capacity in North America, aiming for over 50 GWh by the end of December. The company operates several battery plants across the U.S. and Canada, focusing on both ESS and EV batteries.