LG Energy Solution Posts 601.3 Billion Won Operating Profit in Q3, Up 34% Year-on-Year

Solid Performance Driven by ESS Amid EV Slowdown
Operating Profit at 235.8 Billion Won Excluding IRA Tax Credits
Full-Scale Production of High-Density Pouch and 4680 Batteries Begins in Q4

LG Energy Solution (LGES) recorded an operating profit of 601.3 billion won in the third quarter of this year, marking a 34.1% increase compared to 448.3 billion won in the same period last year. Although sales reached 5.6999 trillion won, representing a 17.1% decrease from 6.8778 trillion won in the previous year, profitability improved due to the strong performance of the energy storage system (ESS) business and the effects of tax credits.

On October 30, 2025, LG Energy Solution announced its sales and operating profit for the third quarter. This operating profit includes approximately 360 billion won in advanced manufacturing tax credits under the U.S. Inflation Reduction Act (IRA). Excluding this, operating profit stands at 235.8 billion won, with an operating margin of 4.1%. Including the tax credit, the operating margin is 10.6%.

LG Energy Solution Poland Wroclaw Plant. LG Energy Solution

Despite a slowdown in electric vehicle battery shipments this year, the ESS division supported the company’s quarterly performance. As large-scale power projects in North America ramped up, shipments of high-capacity ESS batteries expanded, centered on the Ochang plant in Cheongju, South Korea, and the Poland plant. As a result, the proportion of ESS sales surpassed 25% of the total for the first time.

On the other hand, the Ohio and Michigan plants in North America saw their operating rates fall to 70-80% due to production cuts by major finished vehicle customers. This led to a continued burden of fixed costs and an overall decrease in sales. The company plans to gradually raise utilization rates by improving production efficiency and cost structure.

Starting in the fourth quarter, LGES will begin full-scale mass production of next-generation cylindrical '4680' batteries and high-density pouch-type cells. Through these products, the company aims to both secure high-value electric vehicle customers and achieve its goal of increasing the share of ESS in its business portfolio.

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