South Korea’s LG Energy Solution expects a first-quarter operating loss as softer electric vehicle demand weighed on its performance.
Announcing its preliminary results for the first quarter of 2026, the battery maker reported revenue of Won6.55tn ($4.37bn), alongside an operating loss of Won207.8bn.
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On a year-on-year basis, revenue fell 2.5%, while operating profit dropped 155.5%, resulting in a loss.
Compared with the previous quarter, revenue declined 1.2% and operating profit decreased 70.3%.
The company said its earnings guidance includes tax credits of Won189.8bn under the US Inflation Reduction Act’s Advanced Manufacturing Production Credit programme, tied to its US battery production.
Excluding these credits, revenue would have been Won6.36tn, with an operating loss widening to Won397.5bn.
The company shifted into a loss as North American demand for electric vehicles declined, while it also absorbed expenses to repurpose its existing EV battery manufacturing lines for energy storage system (ESS) production.
See also: Korean battery makers adapt to falling US BEV demand
“There was an impact from the suspension of North American joint venture operations and reduced pouch-type EV product volumes due to inventory adjustments by major customers,” an LG Energy Solution official was quoted by Seoul Economic Daily as saying.
Last month, Ultium Cells, the joint venture between General Motors and LG Energy Solution, said it plans to begin producing lithium iron phosphate (LFP) battery cells for energy storage at its Spring Hill, Tennessee facility from the second quarter of 2026.
The venture is investing $70m to convert production lines at the site for LFP cells used in stationary energy storage systems.
At the time, Ultium Cells president & CEO Injae Pahk said: “This announcement marks Ultium Cells’ first major retooling of the Spring Hill process equipment and reflects the company’s continued evolution as a diversified battery cell manufacturer.”
LG Energy Solution is scheduled to release detailed earnings on 30 April.
