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LG Energy Solution Posts Q4 Loss Amid EV Demand Slump, Eyes ESS Growth

LG Energy Solution reported a significant fourth-quarter net loss, attributing it to a slump in electric vehicle demand. Despite the quarterly loss, the company's annual operating profit more than doubled due to a focus on high-margin products. The company received a substantial U.S. tax credit which helped mitigate its operating loss for the quarter. Looking ahead, LG Energy Solution aims for strong sales growth in 2026 by expanding its small battery and energy storage system segments.

Key Points: LG Energy Solution Q4 Loss Widens as EV Demand Slumps

  • Q4 net loss of 772.5B won
  • Annual sales fell 7.6%
  • Operating profit more than doubled for the year
  • Plans 15-20% sales growth in 2026
2 min read

LG Energy Solution remains in red in Q4 amid EV demand slump

LG Energy Solution reports a net loss of 772.5B won in Q4 amid an EV demand slump, though annual operating profit more than doubled.

"Last year, due to various policy changes affecting the EV sector, the overall demand environment contracted - LG Energy Solution"

Seoul, Jan 29

LG Energy Solution, South Korea's leading battery maker, on Thursday reported its fourth-quarter net loss of 772.5 billion won, remaining in the red compared with a year ago, amid an ongoing slump in electric vehicle demand.

The company said in a regulatory filing that it continued to post an operating loss of 122 billion won for the October-December period, compared with a loss of 225.5 billion won a year earlier. Sales fell 4.8 percent on-year to 6.14 trillion won.

The loss was nearly fivefold, or 391.4 per cent, higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

LG Energy Solution said it has received a tax credit of 332.8 billion won through the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act.

Excluding the AMPC, the company recorded an operating loss of 454.8 billion won in the fourth quarter, the company said.

For all of 2025, the company said its net income came to 80.8 billion won, down 76.1 percent from a year earlier.

The operating profit for the year rose 133.9 percent on-year to 1.34 trillion won. Annual sales decreased 7.6 percent to 23.67 trillion won.

"Last year, due to various policy changes affecting the EV sector, the overall demand environment contracted, leading to an on-year decrease in sales of 7.6 percent," the company said in a release.

LG Energy Solution, however, said its annual operating profit more than doubled as the company focused on selling high-margin products and began full-fledged production of new energy storage system (ESS) batteries in the North American market.

In 2026, LG Energy Solution said it plans to expand its annual sales by 15-20 percent by focusing on small batteries and the ESS segment.

- IANS

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Reader Comments

P
Priya S
Interesting to see the US tax credit playing such a big role. It shows how much government policy drives this industry. India's PLI scheme for advanced chemistry cells is crucial. We must support our own battery makers like Exide and Amara Raja to become self-reliant. 🇮🇳
R
Rohit P
A loss of 772.5 billion won is massive! 😲 But their shift to high-margin products and ESS batteries seems smart. Energy storage is the future, especially with India's solar power goals. Maybe Indian companies can partner with them for tech.
S
Sarah B
While the numbers look bad, the strategic pivot is clear. Focusing on ESS and small batteries for 2026 makes sense. The demand slump might be temporary. In the long run, electrification is inevitable. Indian consumers are still wary of range and charging infrastructure though.
V
Vikram M
With respect, I think the article misses a key point for Indian readers. We should be less concerned with a Korean giant's losses and more focused on whether our domestic policy is creating an environment where *our* battery and EV companies can thrive without just copying Western/Korean models.
K
Karthik V
The operating profit more than doubling for the year is the real story here! They're restructuring and finding profitable niches. Indian startups should learn – adapt quickly to market changes. Jai Hind!

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