South Korea’s largest electric vehicle (EV) battery manufacturer, LG Energy Solution (LGES), reported a net loss of KRW 944 billion (US$ 636 million) in the first quarter of 2026, compared with a net profit of KRW 227 billion a year earlier, which the company attributed to the ramp-up of costs relating to its expansion into the energy storage systems (ESS) business, as well as a weaker product mix, including lower sales of pouch-type EV batteries in North America.
Global revenues fell by 2.5% to KRW 6.55 trillion, from KRW 6.72 trillion a year earlier, including an estimated KRW 190 billion in local production incentives in North America. The company reported an operating loss of KRW 208 billion during the quarter, compared with an operating profit of KRW 375 billion a year earlier.
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An LGES spokesperson confirmed that “lower sales of EV batteries to key customers and higher costs associated with the initial ramp-up of an energy storage system (ESS) plant in the United States weighed on our quarterly performance.”
The company confirmed that its North American ESS battery production network is now largely in place, with more than 50 GWh of production capacity scheduled to be available by year-end.
LGES said global shipments of its 46-Series cylindrical EV batteries remained stable, while its ESS business now accounts for over 20% of total revenues. The company is targeting new ESS and “new businesses” to account for 40% of global revenues in the long term.
LGES said that it had won more than 100 GWh of new orders for its 46-Series batteries, with its total order backlog standing at over 440 GWh at the end of April 2026. The company started producing 4695 cells at its Ochang facility in South Korea late last year, and aims to start producing 46-Series cylindrical cells, ranging from 4680 to 46120 models, at its Arizona facility towards the end of 2026.
