[REVISION HISTORY]

LG Energy Solution profit rebound and LFP shift

Updated 9 times since CLSTR started tracking revisions of this situation.

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2026-08-26 05:23 UTC → 2026-08-31 17:51 UTC · added ~~removed~~

In early July 2026, LG Energy Solution warned that quarterly profit could fall 77% as EV demand weakened in North America. By late July, the company reported Q2 consolidated revenue of 7.56 trillion won and operating profit of 113.3 billion won, reversing the prior-quarter loss. This turnaround was driven by a 4.6-fold year-on-year surge in energy-storage-system (ESS) sales, strong European pouch-cell orders, and a 241 billion won U.S. Inflation Reduction Act tax credit. On 5 August, the firm began converting five U.S. EV-battery plants from high-nickel NCM pouch-cell lines to lithium-iron-phosphate (LFP) cells for stationary storage. By mid-August, LG officially commenced production at its $2 billion facility in Lansing, Michigan. The 226-acre site serves as a dual-purpose hub, producing NCM cells for customers like Toyota and dedicated LFP prismatic cells for Tesla’s Megapack 3 units starting in 2027, as well as cells for DTE Energy and Consumers Energy. At full capacity, the Lansing plant is expected to produce up to 35 GWh of cells annually and employ approximately 1,700 people. This launch completes LG’s network of five major ESS production hubs in North America. To support its production of lithium-ion batteries for EVs and ESS, LG signed a 10-year binding offtake agreement on 31 August with Smackover Lithium, a partnership between Standard Lithium Ltd. and Equinor ASA. The deal, estimated to be worth $1.5 billion, will see the South West Arkansas (SWA) Project supply 8,000 metric tonnes of battery-quality lithium carbonate annually using direct lithium extraction (DLE) and purification processes. LG intends to establish more than 50 GWh of LFP production capacity across five North American sites by the end of 2026. Broader industry shifts toward ESS are evident as EVE Energy reported a 62.20% year-on-year increase in H1 2026 operating revenue, with its energy storage segment growing by 69.15%. In North America, Samsung SDI is transitioning its strategy by planning to acquire General Motors' stake in their Synergy Cells joint venture. This $3.5 billion project will convert the New Carlisle, Indiana, facility into Samsung SDI's first wholly-owned North American battery base, prioritizing ESS production with an initial 27 GWh capacity. By late August, the North American battery industry's strategic pivot toward AI infrastructure and defense became more pronounced.

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