LG Energy Solution Releases 2025 Third-Quarter Financial Results
LG Energy Solution Releases 2025 Third-Quarter Financial Results |
| [29-October-2025] |
SEOUL, South Korea, Oct. 29, 2025 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced its third-quarter earnings for 2025, posting a significant improvement in operating profit. The company posted consolidated revenue of KRW 5.7 trillion, a 2.4 percent increase quarter-on-quarter. The operating profit reached KRW 601.3 billion, marking a 22.2 percent increase quarter-on-quarter, with an operating profit margin of 10.5 percent. The operating profit includes the North American production incentive, which is estimated at KRW 365.5 billion. Despite weakened demand for EV pouch-type batteries after the expiration of the U.S. EV subsidy, third-quarter revenue rose slightly compared to the previous quarter, driven by increased ESS battery production at the Michigan facility and the launch of new models from EV (cylindrical batteries) and IT (pouch-type batteries) customers. In terms of operating profit, although the North American production incentive has declined, the company still delivered a meaningful improvement, thanks to increased ESS battery production in the U.S., the start of mass production of new cylindrical batteries, and continued cost-reduction efforts. In the third quarter, LG Energy Solution secured new contracts for both residential and grid-scale ESS projects, bringing its ESS battery order backlog to approximately 120GWh (as of the end of Q3 2025). By establishing production capacity in strategic regions, the company is reinforcing its ability to meet customer needs for supply chains without reliance on China. The company has also successfully diversified the customer base for its cylindrical EV batteries by securing large-scale supply agreements. Specifically, it has won 107GWh in new contracts for its 46-Series cylindrical batteries, thereby reaffirming its local production capacity and competitive edge across its product portfolio. The order backlog for 46-Series cylindrical batteries exceeds 300GWh (as of the end of Q3 2025). In North America, LG Energy Solution continued its efforts to ensure stable operations, advancing its plans to expand production scope at its joint venture facility with Stellantis in Canada. The plant, which currently manufactures battery modules, is now prepared to begin battery cell production, with discussions underway for a potential application beyond EVs. A notable advancement in next-generation battery technology included the development of quick-charging capabilities for lithium metal batteries. Additionally, the company enhanced its local lithium supply chain in the U.S. through an offtake agreement securing up to 40,000 tons of lithium carbonate. Looking ahead, LG Energy Solution anticipates a short-term slowdown in the U.S. EV demand following the expiration of EV subsidy and accordingly expects the sales of alternatives such as HEVs and EREVs to rise as automakers adjust their pace of electrification. The company predicts relatively stable growth in the European EV market, supported by the introduction of EV purchase subsidies and maintenance of CO2 emissions regulation. At the same time, the company expects strong growth in the U.S. ESS market, driven by the resolution of regulatory uncertainties and strong power demand from AI data centers. ESS demand in Europe is also expected to rise, as the share of renewable energy increases and countries intensify efforts to reduce reliance on the Chinese supply chain. During its earnings conference, LG Energy Solution outlined its plans for navigating these market shifts. For its EV batteries, the company will continue to invest in diversifying form factors and chemistries to deliver products optimized for the specific needs of each market segment. For the performance segment where power output and fast charging are key factors, the company will prioritize high-nickel NCMA[1] pouch-type batteries and 46-Series cylindrical batteries, and for the standard segment, it will deliver high-voltage mid-nickel NCM[2] batteries. For the affordable segment where price competitiveness is key, the company will deliver LFP[3] pouch-type batteries scheduled for production later this year, with additional plans to apply dry electrode technology. It is also developing LMR[4] prismatic batteries for mid-to-low end EV models, which will reinforce LG Energy Solution's position as the only company capable of delivering all three form factors (pouch-type, cylindrical, prismatic) across diverse chemistries. The company will also solidify its leadership in the ESS business by delivering a comprehensive ESS solution that integrates high-capacity cells with its advanced system integration (SI) capabilities. It is developing high-density long pouch-type batteries for ESS applications, focusing on enhancing energy capacity and lowering the cost per unit. The company also aims to introduce ESS LFP prismatic batteries by 2027. In terms of operations, LG Energy Solution will maximize operational efficiency and capture the full potential of the ESS business by accelerating the transition of production capacity from EV to ESS, thereby enhancing its ESS supply capabilities. The company will also focus on optimizing asset utilization by minimizing capital expenditures and streamlining its operational asset structure. It will also improve its cost structure through AI-driven automation (AX) and digital transformation (DX) initiatives. About LG Energy Solution LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 80,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com.
SOURCE LG Energy Solution | ||||||
Company Codes: Korea:373220 |
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