LG Energy Solution Reports Record Operating Profit of 2.1 Trillion KRW Last Year... "This Year's IRA Benefits Twice Last Year's"

Sales Surpass 30 Trillion Won and Operating Profit Exceeds 2 Trillion Won
First Time Since Company Launch in 2020
Electric Vehicle Growth Rate Over 30% Annually
Expected to Be in Mid-20% Range This Year

LG Energy Solution expects the scale of benefits from the U.S. Inflation Reduction Act (IRA) tax credits this year to reach approximately 45?50 GWh, more than double that of the previous year.

LG Energy Solution announced this on the 26th through a disclosure of future business and management plans. This projection is based on the commencement of the second phase of the joint venture (JV) with General Motors (GM) and the stable operation of existing North American production bases.

The company also held a briefing on last year's performance on the same day. Lee Chang-sil, Chief Financial Officer (CFO and Vice President), stated, "We have secured North American production capabilities through the stable mass production at the GM JV Phase 1 plant and the construction of cylindrical and ESS plants in Arizona. We have also strengthened our customer portfolio by establishing a JV with Hyundai Motor Group with a capacity of about 30 GWh and signing a supply contract with global leader Toyota for 20 GWh."

Regarding the record-high performance last year with sales of KRW 33.7455 trillion and operating profit of KRW 2.1632 trillion, the company explained, "Sales continued to grow over 30% for two consecutive years by responding to demand in the North American region, and operating profit increased due to cost improvement efforts such as logistics cost reduction, yield and productivity enhancement, as well as benefits from IRA tax credits." Annual sales exceeding KRW 30 trillion and operating profit surpassing KRW 2 trillion mark the first time since the company's establishment in 2020.

LG Energy Solution forecasts that the electric vehicle market will grow by about the mid-20% range this year. This is an analysis that the overall market growth rate, which had been over 30% annually, will temporarily slow down. Regarding this year's performance outlook, LG Energy Solution stated, "We expect a mid-single-digit percentage increase in sales compared to the previous year through expanded sales in the North American region."

Kim Dong-myung, President of the company, said, "This year will be the starting point for the 'LG Energy Solution 2.0 era,' based on strengthening fundamental competitiveness such as technological leadership and realizing differentiated customer value. We will establish a solid business structure and a sustainable growth foundation through qualitative immersion."

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