LG Energy Solution announced on the 8th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 756 billion won. This represents a 25.7% increase compared to the same period last year. Revenue reached 9.6434 trillion won, a 59% increase year-over-year.
The Advanced Manufacturing Production Credit (AMPC) subsidy, based on the U.S. Inflation Reduction Act (IRA), totaled 416.9 billion won. Excluding this subsidy, revenue was 9.2265 trillion won, and operating profit was 339.1 billion won.
Even as the decline in the dollar-won exchange rate weighed on earnings, operating profit surged 567.3% compared to the previous quarter. While the company posted a loss of 127.7 billion won in the previous quarter—excluding the tax credit subsidy under the IRA—it returned to profitability in the third quarter, marking a qualitative improvement.
Key factors contributing to the record quarterly revenue included sustained growth in mid-nickel (Mid-Ni) battery shipments to Europe in the EV business; the resumption of operations at the North American GM joint venture (JV) and the start of operations at the HyundaiMotor JV; a stable flow of cylindrical battery shipments to strategic customers; and the expansion of ESS production capacity in North America within the ESS business.
Regarding operating profit, the burden of fixed costs decreased due to increased ESS shipments in North America. Additionally, improved capacity utilization resulting from increased shipments of mid-to-low-priced EV pouch batteries in Europe, along with a one-time factor—the receipt of compensation from certain EV customers—played a significant role.
The preliminary results are estimates based on Korean International Financial Reporting Standards (K-IFRS) and are disclosed for the convenience of investors. LG Energy Solution plans to announce its final results on November 3.
