LG Energy Solution swings to Q1 loss on weak EV demand

South Korea’s LG Energy Solution expects a first-quarter operating nonaccomplishment arsenic softer electrical conveyance request weighed connected its performance.

Announcing its preliminary results for the archetypal 4th of 2026, the artillery shaper reported gross of Won6.55tn ($4.37bn), alongside an operating nonaccomplishment of Won207.8bn.

On a year-on-year basis, gross fell 2.5%, portion operating nett dropped 155.5%, resulting successful a loss.

Compared with the erstwhile quarter, gross declined 1.2% and operating nett decreased 70.3%.

The institution said its net guidance includes taxation credits of Won189.8bn nether the US Inflation Reduction Act’s Advanced Manufacturing Production Credit programme, tied to its US artillery production.

Excluding these credits, gross would person been Won6.36tn, with an operating nonaccomplishment widening to Won397.5bn.

The institution shifted into a nonaccomplishment arsenic North American request for electrical vehicles declined, portion it besides absorbed expenses to repurpose its existing EV artillery manufacturing lines for vigor retention strategy (ESS) production.

"There was an interaction from the suspension of North American associated task operations and reduced pouch-type EV merchandise volumes owed to inventory adjustments by large customers," an LG Energy Solution authoritative was quoted by Seoul Economic Daily arsenic saying.

Last month, Ultium Cells, the associated task betwixt General Motors and LG Energy Solution, said it plans to statesman producing lithium robust phosphate (LFP) artillery cells for vigor retention astatine its Spring Hill, Tennessee installation from the 2nd 4th of 2026.

The task is investing $70m to person accumulation lines astatine the tract for LFP cells utilized successful stationary vigor retention systems.

At the time, Ultium Cells president & CEO Injae Pahk said: “This announcement marks Ultium Cells’ archetypal large retooling of the Spring Hill process instrumentality and reflects the company’s continued improvement arsenic a diversified artillery compartment manufacturer.”

LG Energy Solution is scheduled to merchandise elaborate net connected 30 April.

"LG Energy Solution swings to Q1 nonaccomplishment connected anemic EV demand" was primitively created and published by Just Auto, a GlobalData owned brand.

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