Seoul – LG Energy Solution, South Korea’s top battery producer, said on Monday that its third‑quarter operating profit likely leapt 34.1 percent from a year earlier, thanks to strong sales of energy‑storage systems (ESS) in the United States.
For the three months to September, the company estimated an operating profit of 601.3 billion won (about $422.8 million) versus 448.3 billion won a year earlier. “Higher U.S. ESS demand, plus more small‑size cylindrical and pouch‑type batteries for electric vehicles (EVs), boosted earnings,” the company explained in a regulatory filing.
Even though overall EV sales slowed, LG Energy Solution saw its sales drop 17.1 percent to 5.69 trillion won from 6.87 trillion won last year. The company warned that prismatic EV battery sales will remain weak in Q4 as automakers adjust electrification plans and keep inventory levels low.
To counter weaker EV battery demand, LG Energy Solution will cut fixed costs and chase more U.S. ESS contracts, leveraging its local production facility. Its operating profit for the first nine months likely rocket‑boosted by 83.3 percent to 1.46 trillion won from 800.9 billion won a year earlier. Sales for the same period fell 8.5 percent to 17.53 trillion won from 19.16 trillion won.
The company plans to publish its final Q3 earnings later this month.
In other news, LG Energy Solution said it will gradually resume executive business trips to the United States after a temporary halt. The pause followed an early‑October raid that detained 47 employees and about 250 subcontractor workers at a jointly‑run Hyundai Motor‑LG Energy Solution battery plant in Georgia. The company has lifted the travel ban and is re‑engaging U.S. partners to secure new ESS projects.
Source: ianslive
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