LG Energy Solution Posts Record Quarterly Revenue

LG Energy Solution achieved its highest quarterly sales in Q3 of this year, with revenues climbing 59% to 9.6434 trillion won ($7.2 billion) compared to the same period last year. Operating profits also rose 25.7% to 756 billion won. The surge in sales was fueled by heightened demand for energy storage systems (ESS) in North America, coupled with increased production and shipment of electric vehicle (EV) batteries.

During a Q3 earnings conference call, the company projected a 40% increase in Q4 ESS shipments compared to the previous quarter, driven by the launch of joint ventures in the region. LG Energy Solution also raised its annual sales growth forecast for the year to 35% to 40%, up from the previous mid-10% to 20% range, attributing the boost to North American production subsidies.

While profitability is expected to ease slightly in Q4 due to the absence of one-off factors and initial fixed costs from expanding Honda joint venture production, the company remains optimistic. Most of its ESS supply volume through 2028 is secured under current production plans. The company is actively pursuing additional orders from diverse sectors, including AI data centers and global tech giants, as demand outpaces production capacity.

To meet this high demand, LG Energy Solution plans to expand its production capabilities, adding new prismatic battery lines to reach over 70GWh by year-end. The company is also diversifying its supply chain to comply with U.S. supply chain regulations and improve financial stability by reducing capital expenditure and focusing on improving cash flows to repay borrowings.