LG Energy Solution Q3 Revenue Hits Record 9.64 Trillion Won

LG Energy Solution reported preliminary third-quarter consolidated revenue of 9.6434 trillion won and operating profit of 7560 billion won, according to bloter.net. Revenue rose 59.0 percent year on year to a quarterly record, while operating profit increased 25.7 percent year on year and 567.3 percent quarter on quarter.

Advanced Manufacturing Production Credit (AMPC) from the US Inflation Reduction Act accounted for 4169 billion won, or 55.1 percent of total operating profit. Excluding AMPC, operating profit was 3391 billion won, turning to profit from a 1277 billion won loss in the second quarter.

Of the 6427 billion won increase in total operating profit, AMPC accounted for 1759 billion won, or 27.4 percent. Total revenue rose 2.0832 trillion won quarter on quarter.

ESS and European Battery Operations

North America energy storage system production expansion and higher European EV battery shipments drove the improvement. First-half ESS revenue grew 4.6 times year on year, and its share of total revenue rose to the high 20 percent range. New orders exceeded 3 trillion won, and LG Energy Solution aims to secure more than 50 GWh of North American ESS capacity by year-end.

ESS line operation started at the GM-Honda joint venture facility in May and June, and the company is stabilizing five production sites. In Europe, increased high-voltage mid-nickel battery supply improved the utilization rate of the Poland plant, with supplies to Volkswagen and Renault. The GM joint venture plant restart and Hyundai joint venture plant launch in North America contributed to sales growth.

The company said the ESS business has not yet reached its own profitability turning point. A one-time compensation payment from a North American automaker for unmet battery purchase commitments was reflected in operating profit.