LG Energy Solution's Q2 Operating Profit Triples YoY to KRW 611.6 Billion, Including KRW 110.9 Billion IRA Tax Credit (Comprehensive)

Provisional Earnings Announcement on the 7th
Sales Hit Another Record High Following Q1

LG Energy Solution announced on the 7th that its operating profit for the second quarter of this year reached 611.6 billion KRW, an increase of 212.7% compared to 195.6 billion KRW in the previous year.

Sales rose 73% year-on-year to 8.7735 trillion KRW, setting a new quarterly sales record. The previous record was 8.7471 trillion KRW in the first quarter of this year.

Compared to the previous quarter, sales increased by 0.3%, while operating profit decreased by 3.4%.

LG Energy Solution stated, "The operating profit of 611.6 billion KRW includes an expected tax credit amount of 110.9 billion KRW related to the U.S. Inflation Reduction Act (IRA)," adding, "Excluding this, the operating profit is 500.7 billion KRW." The operating profit margin is 5.7%. Previously, LG Energy Solution received an IRA tax credit benefit of 100.3 billion KRW in the first quarter of this year.

LG Energy Solution-GM Joint Venture 'Ultium Cells' U.S. Factory
[Photo by LG Energy Solution]

LG Energy Solution has built and operates a total of eight production plants in the North American region alone. It is expected that as these North American plants begin to secure stable production and quality capabilities, the scale of tax credits will also increase.

An industry insider in the battery sector said, "The rise in global metal market prices has led to an increase in battery manufacturing costs, which somewhat slowed second-quarter performance," but added, "Since price-linked contracts with automakers are in place, the impact of these factors on the overall annual performance is expected to be limited."

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