Overview
- LG Energy Solution said Tuesday its second-quarter operating profit fell 77% to about 113.3 billion won, down from 492.1 billion won a year earlier.
- The company included a 241 billion won Advanced Manufacturing Production Credit from the U.S. Inflation Reduction Act in its guidance and said excluding that credit would show an operating loss of roughly 127.7 billion won.
- LGES blamed weak electric vehicle demand in North America for the hit to results and pointed to temporary production halts this year at Ultium Cells joint-venture plants in Ohio and Tennessee.
- To reduce reliance on auto batteries, LGES is scaling its energy storage systems business and in May reportedly signed a roughly 2 trillion won deal to supply 6 GWh of ESS batteries to DTE Energy for grid and AI data-centre projects.
- The company will publish final second-quarter results on July 30 and analysts say rising ESS demand could lift margins over time but current ESS volumes are not yet large enough to offset the near-term EV slump.