LG Energy Solution Q2 profit drops 77% amid EV slowdown, ESS sales aid recovery

LG Energy Solution reported that its operating profit for the second quarter fell 77% year‑on‑year to 113.3 billion won, down from 492.1 billion won a year earlier. Revenue rose 24.8% to 7.56 trillion won, driven by stronger sales despite a prolonged slowdown in global electric‑vehicle (EV) demand, especially in North America.

The company said weak EV sales and the suspension of operations at its U.S. joint‑venture plants – Ultium Cells facilities in Ohio and Tennessee – were the main factors behind the profit decline. A U.S. Inflation Reduction Act production tax credit of 241 billion won (Advanced Manufacturing Production Credit) prevented an operating loss; excluding the credit the quarter would have shown a loss of 127.7 billion won.

In contrast, shipments of grid‑scale energy‑storage system (ESS) batteries in North America grew, helping offset the EV weakness. LG Energy Solution has expanded ESS capacity at its Michigan plant and through an Ohio joint venture with Honda. Analysts expect the second half of the year to see continued revenue growth from ESS demand and a gradual earnings rebound.