• LG Energy Solution reports a consolidated revenue of KRW 5.6 trillion and an operating profit of KRW 492.2 billion for the second quarter of 2025.
• The company achieved a quarterly operating profit despite the absence of North American production incentives, driven by improved product mix and enhanced cost efficiency.
• Responding to recent policy shifts and market demands, the company plans to concentrate on its ESS business in North America and optimize its product and technology portfolios.

SEOUL, South Korea, July 24, 2025 — LG Energy Solution (KRX: 373220) today released its financial results for the second quarter of 2025, confirming a quarterly operating profit primarily due to advancements in its product mix and continuous efforts to boost cost efficiency, even without North American production incentives.

The company recorded consolidated revenue of KRW 5.6 trillion, marking an 11.2 percent decline quarter-on-quarter. Operating profit stood at KRW 492.2 billion, representing a 31.4 percent increase from the previous quarter, with an operating profit margin of 8.8 percent. This operating profit figure includes an estimated KRW 490.8 billion from North American production incentives.

“During the second quarter, we maintained consistent EV battery sales and initiated production at our new ESS battery facility in North America,” stated Chang Sil Lee, CFO of LG Energy Solution. “However, our quarterly revenue was impacted by subdued customer purchasing sentiment and the adjustment of average selling prices (ASP) due to declining metal prices.”

Lee further commented, “Simultaneously, we observed improvements in our product mix, thanks to increased production in North America, alongside greater cost efficiency and a favorable material cost ratio. These factors collectively contributed to achieving a quarterly operating profit, even when excluding North American production incentives.”

At the earnings conference, LG Energy Solution presented its market outlook and strategic initiatives for the second half of the year. The company anticipates a short-term decrease in EV demand, resulting from tariff and policy modifications in the U.S., Europe, and the U.K., coupled with cost pressures on major automakers. Conversely, it expects that advancements in autonomous driving technology will fuel mid-to long-term growth.

The company forecasts heightened demand in the energy storage system (ESS) market, anticipating new business opportunities from both existing and new renewable energy facilities and AI data centers. Furthermore, it believes the IRA Investment Tax Credit (ITC) will create more opportunities by encouraging a shift in the supply chain towards non-Chinese battery suppliers.

Regarding market competition, the company expects that recent policy changes will strengthen barriers for Prohibited Foreign Entities (PFE) entering the U.S. battery market, thereby reinforcing the competitive advantage for battery manufacturers that have already established local production capabilities and robust operational efficiencies.

Considering these market shifts, LG Energy Solution aims to build upon its second-quarter achievements and sustain its growth trajectory. In Q2, the company concentrated on establishing local ESS battery production, which materialized with the commencement of operations at its inaugural North American ESS battery manufacturing hub in Michigan. By proactively adjusting its capacity expansion plans, the company now targets increasing its annual production capacity for ESS batteries to 17GWh by the close of this year.

Operationally, LG Energy Solution will prioritize maximizing the utilization of its existing production capacity by concentrating on ESS batteries and new form factors and chemistries. Additionally, it plans to reduce fixed costs by adjusting and scaling down investment plans while enhancing competitiveness in supply chain management and sourcing.

Concerning its business portfolio, the company will continue to expand its ESS business in North America, aiming to secure over 30GWh of annual production capacity in the region by the end of 2026. In Europe, it will commence mass production of mid-to-low-end batteries, such as high-voltage mid-nickel and LFP batteries, at its Poland facility in the second half of the year.

In terms of technological advancements, LG Energy Solution intends to bolster its mid-to-low-end product portfolio with EV/ESS LFP batteries and EV LMR (lithium manganese-rich) batteries, while also boosting product competitiveness—including energy density—through innovative technologies. The company also plans to introduce EV batteries capable of charging in less than 10 minutes by 2028. For dry electrodes, a key factor for cost innovation, the company will assess production feasibility this year and set up a sample production system at its Ochang facility in Korea.

About LG Energy Solution

LG Energy Solution (KRX: 373220), a company spun off from LG Chem, is a global leader in manufacturing lithium-ion batteries for electric vehicles, mobility solutions, IT applications, and energy storage systems. With three decades of experience in groundbreaking battery technology and extensive research and development (R&D), the company holds the most battery-related patents globally, exceeding 69,600. Its robust international presence, spanning North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automotive manufacturers. Dedicated to fostering a sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its entire value chain by 2050, while upholding the principles of shared growth and fostering a diverse and inclusive corporate culture. To explore LG Energy Solution’s insights and innovations, visit .

SOURCE LG Energy Solution