LG Energy Solution posts ₩944bn Q1 loss as EV battery demand weakens
Synopsis
LG Energy Solution's Q1 2025 results lay bare the EV battery industry's stress fractures — a ₩944 billion net loss, falling sales, and a CEO-led pivot toward energy storage systems. With four new US plants set to come online this year, the company is racing to rebalance its portfolio before the EV slowdown deepens further.
Key Takeaways
LG Energy Solution posted a net loss of ₩944 billion ($635.8 million) in Q1 2025 , reversing a ₩227 billion profit a year ago.
Operating loss stood at ₩207.8 billion , compared to an operating profit of ₩374.7 billion in Q1 2024.
Quarterly sales fell 2.5% to ₩6.55 trillion from ₩6.72 trillion .
CEO Kim Dong-myung is converting part of the Ultium Cells Tennessee plant from EV battery to ESS production.
The company targets raising ESS and new business share to the mid-40% range, from around 20% currently.
LG Energy Solution aims to boost productivity by 50% by 2028 through AI transformation (AX).
LG Energy Solution swung to a net loss of ₩944 billion ($635.8 million) in the first quarter of 2025, reversing a net profit of ₩227 billion recorded in the same period a year ago, as slowing global demand for electric vehicle (EV) batteries continued to pressure earnings. The South Korean battery giant reported the results on Thursday, 30 April, according to Yonhap News Agency.
Key Financial Results
The company also swung to an operating loss of ₩207.8 billion from an operating profit of ₩374.7 billion in the year-ago quarter. Quarterly sales declined 2.5% to ₩6.55 trillion, down from ₩6.72 trillion a year earlier. A company official attributed the deterioration to lower EV battery sales to key customers and elevated costs tied to the initial ramp-up of a new energy storage system (ESS) plant in the United States.
Pivot to Energy Storage Systems
In response to softening automotive demand, Chief Executive Kim Dong-myung last month announced plans to repurpose a portion of the company's EV battery production capacity for ESS manufacturing. Part of the EV battery production line at the Ultium Cells plant in Tennessee has already been converted to produce ESS systems.
Point of View
Where capacity built on optimistic EV adoption curves is now running ahead of actual demand. The pivot to ESS is strategically sound, but it is a defensive move, not a growth story. The more telling signal is the AI productivity push: when a battery giant frames artificial intelligence as critical to 'survival', it suggests the competitive pressure — particularly from Chinese rivals backed by state capital — is more acute than quarterly earnings alone reveal. Four additional US plants coming online this year will only intensify the cost burden before the ESS ramp can meaningfully offset it.
NationPress
1 May 2026
Frequently Asked Questions
Why did LG Energy Solution report a loss in Q1 2025?
LG Energy Solution posted a net loss of ₩944 billion in Q1 2025 primarily due to lower EV battery sales to key customers and higher costs from ramping up a new energy storage system plant in the United States. This reversed a net profit of ₩227 billion in the same quarter a year ago.
How much did LG Energy Solution's sales fall in Q1 2025?
Sales fell 2.5% to ₩6.55 trillion in Q1 2025, down from ₩6.72 trillion in Q1 2024, as weakening global EV demand reduced order volumes from automotive customers.
What is LG Energy Solution's ESS pivot strategy?
CEO Kim Dong-myung has announced plans to repurpose part of the company's EV battery production capacity to manufacture energy storage systems (ESS). Part of the Ultium Cells plant in Tennessee has already been converted, with the company targeting ESS and new businesses to account for the mid-40% range of its portfolio, up from around 20% currently.
What is LG Energy Solution's AI transformation plan?
The company aims to boost productivity across its global operations by 50% by 2028 through an artificial intelligence transformation initiative, referred to internally as AX. CEO Kim Dong-myung described AX as directly linked to the company's long-term competitiveness and survival.
How many battery plants does LG Energy Solution operate?
LG Energy Solution currently operates eight battery plants — one in South Korea and seven across the United States, Canada, Poland, China, and Indonesia. Four additional plants in the US are scheduled to begin operations in 2025.
