LG Energy Solution, a top battery manufacturer in South Korea, disclosed a fourth-quarter net loss of 772.5 billion won ($541.3 million) on Thursday. This loss marks a continued decline from the previous year, attributed to a slowdown in electric vehicle demand. The company also reported an operating loss of 122 billion won for the October-December period, down from 225.5 billion won a year earlier, with sales decreasing by 4.8 percent to 6.14 trillion won.
The net loss reported by LG Energy Solution was significantly higher than the average estimate, standing at 391.4 percent above expectations. This data was sourced from a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. The company highlighted that it 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 impact of the AMPC, LG Energy Solution recorded an operating loss of 454.8 billion won in the fourth quarter. Looking at the full year of 2025, the company’s net income dropped by 76.1 percent to 80.8 billion won, while its operating profit surged by 133.9 percent to 1.34 trillion won. Annual sales for the year decreased by 7.6 percent to 23.67 trillion won.
LG Energy Solution acknowledged the challenging environment in 2025, citing policy changes affecting the EV sector that led to a decline in sales. Despite this, the company noted that its annual operating profit more than doubled, driven by strategic focus on high-margin products and the commencement of full-scale production of new energy storage system (ESS) batteries in the North American market. Looking ahead to 2026, LG Energy Solution aims to boost its annual sales by 15–20 percent, emphasizing small batteries and the ESS segment.
