Did LG Energy's Q3 Operating Profit Surge by 34.1% Due to US Demand?
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Synopsis
Discover how LG Energy Solution Limited has seen an impressive operating profit increase of 34.1% in Q3, driven by high demand for energy storage systems in the U.S. Despite a decline in overall sales, the company is adapting to market changes and focusing on future growth strategies.
Key Takeaways
- Q3 operating profit surged 34.1% due to strong ESS sales in the U.S.
- Operating profit estimated at 601.3 billion won compared to 448.3 billion won last year.
- Sales declined 17.1% amid an overall slowdown in EV sales.
- Company focuses on reducing costs and securing new ESS contracts.
- Final earnings results to be announced later this month.
Seoul, Oct 13 (NationPress) LG Energy Solution Limited, the premier battery producer in South Korea, announced on Monday that its operating profit for the third quarter is projected to have increased by 34.1% compared to the same period last year, primarily fueled by robust sales of energy storage systems (ESSs) in the United States.
For the three months concluding in September, the operating profit is anticipated to have soared to 601.3 billion won ($422.8 million), up from 448.3 billion won during the corresponding period a year ago, as detailed in a regulatory filing, according to Yonhap news agency.
A company representative stated, “In addition to the surge in ESS sales in the U.S., the heightened demand for small cylindrical and pouch-type batteries for electric vehicles (EVs) has significantly boosted our quarterly performance.”
Nevertheless, sales experienced a decline of 17.1%, falling to 5.69 trillion won from 6.87 trillion won, amid a general slowdown in the EV market.
Looking forward, LG Energy Solution anticipates that sales of prismatic EV batteries will remain lackluster in the fourth quarter as major automotive manufacturers revise their electrification strategies and keep inventory levels low.
To counteract the diminished demand for EV batteries, the company plans to concentrate on minimizing fixed costs while securing additional ESS contracts in the U.S., leveraging its local ESS production facility.
For the period spanning January to September, operating profit is projected to have surged 83.3% to 1.46 trillion won, up from 800.9 billion won a year prior.
Sales for the nine-month duration are estimated to have decreased 8.5% to 17.53 trillion won from 19.16 trillion won in the previous year.
The company intends to reveal its final earnings results for the September quarter later this month.
In other news, earlier this month, the battery manufacturer announced its plans to gradually resume official business trips to the United States, following a suspension initiated about a month ago after a mass detention incident in Georgia.
All visits to the U.S. were halted after 47 employees and approximately 250 subcontractors were detained in a U.S. immigration raid at a construction site for a joint Hyundai Motor-LG Energy Solution battery facility on September 4, reports Yonhap news agency on October 2.
Point of View
It is essential to acknowledge LG Energy Solution's significant growth amid the challenges faced in the global EV market. The company's focus on energy storage systems and strategic adjustments in response to market conditions highlight its resilience and adaptability, ensuring its continued relevance in the battery sector.
NationPress
13/10/2025
Frequently Asked Questions
What contributed to LG Energy's profit increase?
The profit increase was primarily driven by strong sales of energy storage systems (ESSs) in the United States and heightened demand for small-sized batteries for electric vehicles (EVs).
How much did LG Energy's sales decline?
Sales fell by 17.1% to 5.69 trillion won amid an overall slowdown in EV sales.
What is LG Energy's strategy for the future?
The company plans to reduce fixed costs and focus on securing more ESS deals in the U.S. to counteract weaker EV battery demand.
When will LG Energy announce its final earnings results?
The company intends to announce its final earnings results for the September quarter later this month.
What happened with LG Energy's business trips to the U.S.?
LG Energy suspended all official business trips to the U.S. following a mass detention incident but plans to gradually resume them.
