SEOUL: LG Energy Solution (LGES), South Korea’s leading battery manufacturer, reported a 138% year-on-year increase in first-quarter operating profit, buoyed by favourable foreign exchange conditions and a significant tax credit under the US Inflation Reduction Act.
The company, which supplies major global automakers including Tesla, General Motors, and Hyundai, posted an operating profit of 375 billion won (US$262 million) for the January to March period, up from 157 billion won a year earlier. Revenue rose 2.2% to 6.3 trillion won.
LGES noted that without the US tax credit, it would have recorded an operating loss of 83 billion won, highlighting the ongoing pressure from slowing electric vehicle (EV) demand in key international markets.
Despite the strong headline profit, shares of LGES slipped 2.1% in morning trading following the announcement, underperforming the broader KOSPI index, which edged up 0.1%.
The result aligns with earlier guidance and reflects the broader challenges facing the EV battery sector amid currency volatility and shifting demand dynamics globally.
