LG Energy Solution (LGES) announced that it continued to suffer significant losses in the fourth quarter of 2025, amid weak demand for electric vehicles. The South Korean battery manufacturer said it estimates that it incurred an operating loss of KRW 122 billion (US$ 83 million) during the quarter, albeit less than half the KRW 225 billion loss reported in the fourth quarter of 2024.
Fourth-quarter sales revenue declined by 4.8% to KRW 6.14 trillion, while estimates for net earnings have yet to be released. The company’s financial performance was helped by a KRW 332.8 billion tax credit from the Advanced Manufacturing Production Credit (AMPC) under the US Inflation Reduction Act.
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Excluding the AMPC tax credit, LGES estimates that it would have incurred an operating loss of KRW 454.8 billion in the fourth quarter. The company said it expects its full-year 2025 operating profit to be KRW 1.34 trillion, up 134% from the previous year, helped by strong demand earlier in the year, before the US government cut tax credits for BEV buyers last September.
Global battery manufacturers have been expanding aggressively in the energy storage system market to make up for slowing demand in the US for battery electric vehicles (BEVs).
