LG Energy Solution Reports Loss on Weak North American EV Demand

SEOUL - LG Energy Solution swung to an operating loss in the first quarter, reporting a loss of 208 billion won ($140 million), as weak demand from electric vehicle makers, particularly in North America, weighed on results. The loss, which came in line with earlier guidance, compares with a profit of 375 billion won a year earlier.

Revenue fell 2.5% to 6.6 trillion won from a year earlier.

The company supplies Tesla, General Motors, and Hyundai Motor.

LGES said the operating loss would have been 398 billion won without a tax credit under the U.S. Inflation Reduction Act.

To counter weak EV battery demand, LGES is ramping up its energy storage systems business, driven by rising electricity needs from AI data centres. The company aims to triple ESS revenue this year. Nomura estimates 2025 ESS revenue at about 2.8 trillion won.

Rival Samsung SDI also reported strong ESS demand from data centres, and noted that European EV demand is picking up as major countries reintroduce subsidies and higher oil prices boost consumer interest.