Company Reports

June-quarter revenue for LG Energy Solution, or LGES, grew 25% year on year driven by energy storage systems, or ESS, battery demand in US and electric vehicles, or EV, pouch batteries in Europe. Operating income remained lackluster as weaker US demand weighed on EV battery margin.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 9% share by shipment in 2025, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 9% share by shipment in 2025, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

March quarter revenue for LG Energy Solution nudged up 2% year-on-year with battery demand from energy storage systems, offsetting weak electric vehicle demand. Operating income remained in the loss as EV battery profitability continued to face pressure from declining demand in the US.

December-quarter revenue for LG Energy Solution slipped 5% year on year due to weak battery demand from electric vehicles. Operating income turned negative, and EV battery profitability continued to face pressure from declining EV demand in the US and low utilization.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 11% share by shipment in 2024, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

September-quarter revenue for LG Energy Solution slipped 17% year on year due to weak battery demand for electric vehicles. Operating income, despite turning around excluding the US tax credit, remained under pressure with the decline in EV battery profitability.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 11% share by shipment in 2024, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

June quarter revenue for no-moat LG Energy Solution slipped 10% year over year due to weak battery demand from electric vehicles.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 15% share by shipment in 2023, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

March-quarter revenue growth and profit for no-moat LG Energy Solution, or LGES, was sluggish due to weak electric vehicle battery demand and a decline in EV battery profitability. The market is reacting negatively to the uncertain outlook.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 15% share by shipment in 2023, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

Weak EV demand drove December quarter revenue down 19% year on year, leading to a net loss for the quarter. Full-year 2024 net loss was KRW 505.6 billion.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 15% share by shipment in 2023, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

South Korean President Yoon Suk Yeol declared martial law following parliamentary disputes. The declaration was voted down by parliament.

September-quarter revenue and operating profit for LG Energy Solution were both weaker than we expected. The declines in revenue and profit were attributable to weak battery demand from electric vehicles and lower EV battery profitability due to a prolonged price drop.

LG Energy Solution was spun off from LG Chem’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chem retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles with 15% share by shipment in 2023, according to SNE Research. Customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

LG Energy Solution, or LGES, was spun off from LG Chemical’s battery subsidiary in December 2020 and listed on the Korea Exchange in January 2022. LG Chemical retains around an 82% share of LGES. The company is one of the top lithium-ion rechargeable battery suppliers globally. It is the third-largest global battery maker for electric vehicles, or EVs, with 15% share by shipment in 2023, according to SNE Research. The company’s customers include many leading automakers such as Tesla, General Motors, Volkswagen, and Hyundai.

June-quarter revenue and operating profit for no-moat LG Energy Solution were both weaker than we expected. Management attributed the year-over-year revenue decline to weak battery demand from electric vehicles and a decline in battery price due to a prolonged lithium price drop. We revise down our 2024-28 revenue estimates by 11%-23% on reduced outlook for EV battery demand and price trend. To factor in the margin weakness in EV battery and cylindrical battery sales, but partly offset by the increased United States government tax rebate assumptions, we reduce our 2024-28 operating income forecast by 9%-24%.

March-quarter revenue and operating profit for LG Energy Solution, or LGES, were both weaker than we expected. Management attributed the revenue decline to weak battery demand from electric vehicle, or EV, and energy storage makers and a fall in battery prices due to the lithium price drop. We lower our 2024-26 revenue estimates by 2%-3% due to a reduced outlook for EV battery demand. To factor in the margin weakness in EV battery sales, we reduce our 2024-26 operating income forecasts by 8%-21%. We reduce our fair value estimate to KRW 311,000 per share from KRW 366,700, which corresponds to 49 times P/E and 16 times enterprise value/EBITDA on a 2024 basis.