LG Energy Solution Q3 profit hits KRW 756 billion as ESS shipments surge

Third-quarter results

According to the company, revenue rose 27.6% quarter-on-quarter to KRW 9.6 trillion. That figure includes the North America production incentive of KRW 416.9 billion. Operating profit came to KRW 756 billion, an operating profit margin of 7.8%.

LG Energy Solution said revenue growth came from a significant increase in ESS shipments, higher shipments of EV pouch-type batteries led by high-voltage mid-nickel products, and continued solid supply of 21- and 46-Series cylindrical batteries for EVs.

Profit improved because of better plant utilization in Europe, continued growth in cylindrical battery volumes, and a lighter fixed-cost burden as ESS capacity in North America gradually stabilized, the company said.

New ESS project and EV contract extensions

In ESS, LG Energy Solution secured its first direct-supply Behind-the-Meter (BTM) BESS project for a big tech customer. The company says this shows it can reliably supply non-PFE (non-prohibited foreign entity) products locally and opens opportunities for further AI data center projects where supply chain security is critical. It also qualified as an NVIDIA DSX Ready BESS partner, backed by its high-capacity LFP-based AC Link solution and in-house system integration capabilities.

In EVs, the company increased volumes and extended supply periods under existing contracts for its cost-competitive high-voltage mid-nickel Gen2 products, which it says secures a stable revenue base in Europe.

On operations, LG Energy Solution completed a new link production line in Arizona and is expanding pack production capacity in Ohio in phases. Solid customer demand improved utilization at its Poland plant, and the North American joint venture plant with GM resumed operations. In the supply chain, it diversified LFP cathode suppliers for non-PFE compliance and secured long-term supplies of lithium concentrate and lithium carbonate in North America.

Regional plans through 2029

In North America, the company points to a U.S. executive order aimed at strengthening power grid security and reducing reliance on equipment from designated foreign entities, which it says continues to support demand for locally produced ESS. LG Energy Solution plans to convert more EV pouch-type battery lines to ESS production and add new prismatic ESS lines, lifting North American ESS capacity to over 70 GWh by end-2027.

It also plans to start U.S. production of 46-Series cylindrical batteries by end-2026 and add tabless 2170 lines for HEVs from 2027. That would bring North American cylindrical capacity to over 20 GWh by end-2027.

In Europe, the company cites proposed revisions to the Industrial Accelerator Act that emphasize regional production, and plans to secure local 46-Series cylindrical production lines by 2029. In Asia, it aims to produce sodium-ion battery samples this year for proof-of-concept testing with a key ESS customer, and to expand into new applications with high-power LFP 2170 batteries starting next year.

Supply chain and what it means

LG Energy Solution says rising oil and natural gas prices and stabilizing battery raw material prices are improving battery cost competitiveness from a total cost of ownership perspective. It plans to increase direct metal purchasing and expand supply of key materials to suppliers. It will also grow its North American non-PFE LFP cathode supplier base to four or more suppliers, localize key materials and components in Europe, and develop non-PFE supply chains for next-generation products such as sodium-ion and LMR batteries.

The results indicate that, by the company's account, ESS is becoming a central growth driver alongside EV batteries, with local production and regulatory compliance shaping its investment plans in the U.S. and Europe.