LGES profit drops 77% on EV slump

LG Energy Solution (LGES), a Korean battery maker, said Tuesday its estimated operating profit plunged 77 percent in the second quarter amid a prolonged slowdown in the EV market.

In the three-month period that ended in June, operating profit fell to 113.3 billion won ($74.1 million) from 492.1 billion won a year earlier, the company said in a press release.

"Sluggish EV sales in the North American market and the suspension of operations at U.S. joint venture plants since early this year affected the quarterly results," a company spokesperson said.

Ultium Cells, the joint venture between LGES and General Motors, temporarily halted operations at its first plant in Ohio and its second plant in Tennessee in January due to slowing demand.

Sales rose 24.8 percent to 7.56 trillion won in the second quarter from 6.06 trillion won a year ago.

LGES received a tax credit of 241 billion won under the Advanced Manufacturing Production Credit (AMPC) program of the U.S. Inflation Reduction Act, the company said.

Excluding the AMPC, the company posted an operating loss of 127.7 billion won in the second quarter.

For the first six months of 2026, the company swung to an operating loss of 94.5 billion won from an operating profit of 866.8 billion won and sales rose 10.5 percent to 14.1 trillion won from 12.7 trillion won a year earlier.

The company said it will release its final second-quarter earnings results on July 30.

Yonhap