LG Energy Solution (LGES) reported its third-quarter 2024 financial performance, showing consolidated revenue of KRW 22.18 trillion ($323 million) and an operating profit of KRW 751.9 billion, which includes an estimated KRW 466 billion tax credit under the Inflation Reduction Act (IRA).
Despite a 39% year-over-year decline in profit due to weaker electric vehicle demand, LGES highlighted strong momentum in its energy storage systems (ESS) segment, particularly in the grid-scale market.
To address growing demand in energy storage, LGES announced it will launch a high-capacity lithium iron phosphate battery with a 20% increase in energy density, along with other innovative products. Next year, the company plans to initiate U.S. production of ESS batteries and is evaluating the possibility of converting some European electric vehicle (EV) production lines to support ESS demand.
Chang Sil Lee, CFO of LGES, noted that overall revenue rose compared to the previous quarter due to increased sales to major European automakers, ramped-up production from joint ventures in North America and Indonesia, and notable growth in grid-scale ESS projects.
He added that operating profit, excluding the impact of the IRA tax credit, benefited from greater shipment volumes for both EV and ESS batteries, along with lower unit costs stemming from stabilized metal prices.
Looking ahead, LGES anticipates robust demand, especially in the North American power grid sector. The company aims to focus on long-term, large-volume projects, capitalizing on its expertise in stable production and local supply to create reliable revenue streams.
Earlier this year, LG Energy Solution temporarily halted construction of a U.S.-based ESS battery production line at its large Arizona factory, citing a need to adjust investment pace due to market conditions. The EV cell production line at the same facility continues on schedule.
As reported by pv-magazine-india.com, the strategic adjustment highlights LGES’s focus on responding to evolving market demands while maximizing the benefits from policies that support local manufacturing.
