LG Energy Solution announced that it sustained a continued operating loss in the fourth quarter, with the loss nearly halving from the previous year due to sluggish global demand for electric vehicle batteries. The company reported an operating loss of 122 billion won in the October-December period, a significant improvement from the 225 billion won loss in the same quarter of 2024.
Sales for the quarter decreased by 4.8 percent to 6.14 trillion won, while the net income data was not available at the time of the report. Despite the challenging market conditions, the operating loss was 8.5 percent lower than the average estimate based on a survey by Yonhap Infomax.
LG Energy Solution disclosed 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 this credit, the company recorded an operating loss of 454.8 billion won in the fourth quarter.
The company is set to release its final earnings report later, with the full-year 2025 operating profit reaching 1.34 trillion won, marking a significant increase of 133.9 percent from the previous year. Annual revenue, however, saw a 7.6 percent decline to 23.67 trillion won, with net earnings data not yet available.
During a conference call in October, LG Energy Solution had anticipated losses in the fourth quarter due to reduced shipments of EV batteries to North America. Analysts predict that despite a sluggish North American EV market, the company aims to rebound by focusing on securing new energy storage system (ESS) projects, particularly in response to the rising demand for ESS products in North America.
