Seoul — LG Energy Solution reported a second-quarter net loss as weak electric vehicle demand in North America and production suspensions at U.S. joint venture plants weighed on its results.
The South Korean battery maker posted a net loss of 328.6 billion won, or about $228.4 million, for the three months ended June 30. That compared with a net profit of 90.6 billion won in the same period a year earlier.
“Sluggish EV sales in the North American market and the suspension of operations at U.S. joint venture plants since early this year weighed on the quarterly results,” a company official said.
Ultium Cells, LG Energy Solution’s battery joint venture with General Motors, temporarily suspended operations at its first plant in Ohio and second plant in Tennessee in January because of slowing demand.
Operating profit fell 77% year-over-year to 113.3 billion won from 492.1 billion won. The result was 43.8% below the average estimate compiled by Yonhap Infomax.
Sales increased 24.8% to 7.56 trillion won from 6.06 trillion won a year earlier.
LG Energy Solution received a 241 billion won tax credit under the Advanced Manufacturing Production Credit program included in the U.S. Inflation Reduction Act.
Excluding that tax benefit, the company recorded an operating loss of 127.7 billion won during the quarter.
For the first six months of 2026, LG Energy Solution posted a net loss of 1.27 trillion won, compared with a net profit of 317.2 billion won in the same period last year.
The company also recorded an operating loss of 94.5 billion won for the first half, reversing an operating profit of 866.8 billion won a year earlier.
First-half sales rose 10.5% to 14.1 trillion won from 12.7 trillion won. (Source: IANS)
