An LG Energy Solution booth at InterBattery 2026 / Courtesy of LG Energy Solution
Despite posting a first-quarter operating loss, LG Energy Solution said Thursday it aims to achieve an earnings rebound by expanding its electric vehicle (EV) and energy storage system (ESS) businesses from the second quarter onward.
In a regulatory filing, the company said it posted an operating loss of 207.8 billion won ($145 million) for the January-March period, swinging from an operating profit of 374.7 billion won a year earlier and marking a second straight quarterly loss.
Revenue fell 2.5 percent year-on-year to 6.555 trillion won, while the company swung to a net loss of 944 billion won.
A key factor behind the earnings decline was a sharp drop in advanced manufacturing production credits under the U.S. Inflation Reduction Act. The subsidy totaled 189.8 billion won in the first quarter, just 41.5 percent of the 457.7 billion won recorded a year earlier.
Additional costs tied to ramping up five ESS production bases in North America, along with reduced shipments of EV pouch batteries to strategic customers in the region, also weighed on profitability.
Despite the weak results, the company said it has secured more than 440 gigawatt-hours of order backlog for its 46-series cylindrical batteries, adding more than 100 gigawatt-hours in new orders since the end of last year. The batteries are expected to be supplied to the next-generation electric vehicle platform of Germany’s BMW.
LG Energy Solution expects the Middle East conflict to highlight ESS as a complement to traditional power generation while accelerating the global transition to electric vehicles.
The company plans to boost new ESS orders tied to power infrastructure and artificial intelligence data centers while focusing on stabilizing its North American production bases. In the electric vehicle sector, it aims to seize demand opportunities with a diversified product portfolio and flexible production capabilities, while preparing to launch its plant in Arizona later this year.
“Based on a meticulous strategy and disciplined execution, we will accelerate growth and take the lead in future markets,” CEO Kim Dong-myung said.