LG Energy Solution, Last Year’s Revenue Surpasses 25 Trillion KRW and Operating Profit Exceeds 1 Trillion KRW... Record High Performance (Comprehensive)

Expansion of Battery Sales with Electric Vehicle Market Growth... Ultium Cells Plant 1 Also Fully Operational
Q4 Operating Profit Down 54% from Previous Quarter Due to One-Time Costs Including Performance Bonuses

[Image source=Yonhap News]

[Asia Economy Reporter Seo Mideum] LG Energy Solution, the largest battery company in Korea, recorded its highest-ever performance last year. This is analyzed as a favorable result due to the growth of the electric vehicle market.

LG Energy Solution announced on the 9th that its consolidated operating profit for last year was tentatively estimated at 1.2137 trillion KRW. This figure represents a 57.9% increase compared to the previous year, surpassing 1 trillion KRW in annual operating profit for the first time.

Sales also increased by 43.4% year-on-year to 25.5986 trillion KRW, marking the highest record since the company's establishment.

This record is attributed to the sharp growth of the electric vehicle market despite the global economic downturn. Last year, major automakers successively expanded their electric vehicle launches, which led to an increase in shipments of pouch and cylindrical batteries.

The preliminary results for the fourth quarter showed sales of 8.5 trillion KRW and operating profit of 237.4 billion KRW. Compared to the previous quarter, sales increased by 11.6%, but operating profit decreased by 54.5%. Compared to the same period last year, sales increased by 92.3%, and operating profit improved by 213.6%.

LG Energy Solution stated, "Sales increased compared to the previous quarter due to steady customer demand response and expanded sales volume from the full-scale operation of GM JV Phase 1, but profits temporarily decreased due to one-time costs."

The one-time costs disclosed by LG Energy Solution include performance bonuses reflecting the strong annual results and increased ESS external replacement costs due to rising costs such as raw materials, logistics, and exchange rates. The company explained, "Excluding the reflected one-time costs, the operating profit for the fourth quarter of last year is similar to that of the previous quarter."

LG Energy Solution has eight out of the top ten global automobile companies as customers. It is also building joint venture (JV) factories with GM, Hyundai Motor, Stellantis, and Honda.

This content was produced with the assistance of AI translation services.