LG Energy Solution Leads South Korean Battery Makers to Q2 Profit Turnaround

LG Energy Solution reported second‑quarter 2026 consolidated revenue of 7.56 trillion won and operating profit of 113.3 billion won (a 1.5 % margin), reversing a loss from the previous quarter. The profit was driven by a surge in energy‑storage‑system (ESS) sales, which grew 4.6 times year‑on‑year and now represent roughly a high‑20 % share of total revenue, as well as increased pouch‑cell orders for electric‑vehicle (EV) customers in Europe. The company also benefited from a 241 billion won tax credit under the U.S. Inflation Reduction Act’s Advanced Manufacturing Production Credit.

Samsung SDI posted a Q2 operating profit of 203.8 billion won on sales of 3.7688 trillion won, achieving its first profit in seven quarters, while SK On recorded an operating profit of 82.18 billion won on 2.9460 trillion won of sales. Both firms cited strong demand for ESS, UPS and battery‑backup‑unit products serving AI data‑centre power needs as the main catalyst for their turn‑around.

Across the three South Korean battery makers, the rapid growth of ESS demand—spurred by AI‑driven data‑centre projects and new U.S. and European policies—offset a lingering slowdown in the EV market. The companies expect continued ESS expansion, with LG Energy Solution planning to double its North‑American ESS capacity in the second half of the year and project a 50 % increase in ESS shipments in the third quarter. Overall sales for the sector rose about 24‑25 % year‑on‑year despite weaker EV demand.