Did LG Energy Solution Post an Operating Loss in Q4 Amid EV Market Slump?
Synopsis
On Jan 9, LG Energy Solution reported ongoing operating losses in Q4 due to weak EV battery demand, although losses have decreased from last year. Analysts anticipate a focus on energy storage systems for a potential recovery. Discover what this means for the future of the company and the EV market.
Key Takeaways
Operating loss for Q4 is 122 billion won, down from 225 billion won last year.
Sales decreased by 4.8% to 6.14 trillion won.
Tax credit of 332.8 billion won received under U.S.
Inflation Reduction Act.
Focus on energy storage systems for potential recovery.
Overall operating profit for 2025 increased by 133.9%.
Seoul, Jan 9 (NationPress) LG Energy Solution announced on Friday that it is still operating at a loss in its fourth quarter (Q4), although the operating loss has significantly reduced by nearly 50% compared to the previous year due to a decline in global demand for electric vehicle (EV) batteries.
The operating loss for the October-December timeframe is projected to be 122 billion won ($83.8 million), a drop from the 225 billion won loss recorded in Q4 2024, according to a preliminary report from the company.
Sales have fallen by 4.8% to 6.14 trillion won. Net income data is currently unavailable, as reported by Yonhap news agency.
The operating loss was 8.5% lower than what analysts had estimated, as per a survey by Yonhap Infomax, the financial data service of Yonhap News Agency.
LG Energy Solution disclosed that it has qualified for a tax credit amounting to 332.8 billion won through the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act.
Without the AMPC support, the company would have reported an operating loss of 454.8 billion won in the fourth quarter.
It is expected that the company will provide its final earnings report soon.
For the entire year of 2025, the operating profit totaled 1.34 trillion won, marking a remarkable increase of 133.9% year-over-year.
However, annual revenue has decreased by 7.6% to 23.67 trillion won. Again, data for net earnings is not available.
During its third-quarter earnings conference call in October, LG Energy Solution indicated that the company anticipated further losses in the fourth quarter due to reduced shipments of EV batteries to North America.
Analysts assert that even though the North American EV market is likely to remain stagnant this year, the company aims for a turnaround by concentrating on acquiring new energy storage system (ESS) projects.
"With the escalating demand for ESS products in North America amidst the movement to reduce reliance on China, the ESS sector is projected to gain traction," stated Lee Jin-myung, a researcher at Shinhan Securities Co., in a report.
Point of View
The ongoing challenges faced by LG Energy Solution highlight the broader struggles within the EV market. While the company has seen a reduction in losses, the continuing decline in demand for EV batteries raises significant concerns for the industry’s future. As LG seeks to pivot towards energy storage systems, it becomes crucial for stakeholders to monitor these developments closely.
NationPress
11 May 2026
Frequently Asked Questions
What is the operating loss for LG Energy Solution in Q4?
The estimated operating loss for LG Energy Solution in Q4 is 122 billion won ($83.8 million), a significant reduction from the previous year's loss.
What factors contributed to LG Energy Solution's losses?
The losses are attributed to weak global demand for electric vehicle batteries and reduced shipments to North America.
How much tax credit has LG Energy Solution received?
LG Energy Solution received a tax credit of 332.8 billion won through the Advanced Manufacturing Production Credit under the U.S. Inflation Reduction Act.
What is the expected focus for LG Energy Solution moving forward?
The company is expected to focus on securing new energy storage system (ESS) projects to navigate the current market challenges.
How did LG Energy Solution perform in 2025 overall?
For the entire year of 2025, LG Energy Solution reported an operating profit of 1.34 trillion won, which is a 133.9% increase from the previous year.
