LG Energy Solution Releases Third Quarter 2024 Results According to Investing.com

• LG Energy Solution shipment KRW 6.8778 trillion in consolidated revenue and KRW 448.3 billion in operating profit
• The company secured large-scale supply agreements using new form factors and chemistries
• The company to meet the needs of the EV / ESS market effectively, with a long-term focus on operational efficiency, R&D, and business portfolio expansion

SEOUL, South Korea, October 27, 2024 /PRNewswire/ — LG Energy Solution (KRX: 373220) today announced its third quarter earnings, along with a quarterly progress report and action plan for its EV battery and energy storage system (ESS) business.

The company posted a combined revenue of KRW 6.8778 trillionAn 11.6 percent quarter-on-quarter increase and a 16.4 percent year-on-year decrease. Operating profit there KRW 448.3 billionA 129.5 percent quarter-on-quarter increase and a 38.7 percent year-on-year decrease. The operating profit includes the estimated amount of the IRA tax credit of KRW 466 billion. Excluding the IRA tax credit, the company has recorded a quarterly operating loss of KRW 17.7 billion.

“Expanding sales to major European automakers and increasing production at our joint venture facilities in North America and Indonesiaas well as substantial ESS revenue growth from square-scale projects, increasing overall revenue compared to the previous quarter,” he said Chang Sil LeeCFO of LG Energy Solution.

“We also saw a quarterly improvement in operating profit excluding the effect of the IRA tax credit on the back of better utilization rates led by increased shipments in EV and ESS batteries, as well as lower unit cost burdens in line with the stabilization of metal prices,” said Lee.

• Recent Advances: Large Scale Supply Agreements for New Form Factors and Chemicals

LG Energy Solution succeeded in securing large-scale orders from top global automakers for new form factors and chemistry totaling 160GWh, further advancing the goal of leading global innovation in EV batteries.

Major supply agreements include a contract for 50GWh cylindrical batteries with major car manufacturers to power EVs sold in North America. With the deal, the company has expanded its customer portfolio for cylindrical EV batteries from mainly EV start-ups to established car manufacturers, and secured a stronger market presence in North America through local production capabilities.

For NCM bags⁽¹⁾ EV battery, LG Energy Solution secure supply agreements totaling 109GWh for commercial vehicles sold in Europeusing the competitiveness of chemical technology characterized by high-power and long life cycle. This agreement is also expected to contribute to improve the Poland production efficiency of the facility when production starts after the second half of 2026.

• Action Plan for EV and ESS Battery Business

For the EV battery business, as customers are increasingly interested in applying more diverse battery chemistries and form factors tailored to different EV segments, LG Energy Solution will offer customers a variety of chemical options, such as LFP and High Voltage Mid-Ni to support all EV segments. On the same note, the company will increase the variety of product form factors by starting mass production of 46-Series cylindrical batteries.

To address the need for cost innovation for core EV components, the company will continue to advance materials and process technology. For battery materials, it will apply industry leading material technology such as single crystal cathode and silicon content in the anode. In addition, it will focus on developing dry electrode technology to achieve higher energy density and cost innovation, with the aim of implementing mass production in 2028.

In addition, responding to the importance of EV safety, LG Energy Solutions develops various solutions to strengthen product safety, including advanced thermal propagation prevention (TP) technology for pouch-type batteries. The company also completed the development of an optimized cooling module structure for cylindrical batteries.

For the ESS battery business where strong momentum is expected, especially in the power grid, LG Energy Solution will actively respond to long-term, large-volume projects North Americausing stable production knowledge and local supply capabilities, creating opportunities to generate stable income. To increase competitiveness, the company also plans to launch high-capacity LFP ESS batteries, along with energy management and system integration (SI) software. To maximize the benefits of the policy of supporting local manufacturers, the company will start the production of ESS batteries ACE next year and also consider converting the EV production line to ESS in response to European market demand.

In the medium to long term, LG Energy Solutions key strategic initiatives will: proactively adjust operations, strengthen R&D investments, and expand business portfolios.

1) Proactively manage operations: Reduce capacity expansion and adjust ramp-up speed to optimize the utilization rate of existing lines

2) Strengthen R&D investment: Securing different materials and process technologies, accelerating R&D for chemical solutions and optimized form factors, developing next-generation batteries such as bipolar semi-solid batteries and sulfide-based solid-state batteries.

3) Develop a business portfolio: Creating a closed-loop recycling system on a regional basis, developing BaaS⁽²⁾/EaaS⁽³⁾ business, exploring new market opportunities for other applications beyond EVs

“As we anticipate unprecedented changes in the external environment, we will quickly respond to these changes through a comprehensive business strategy,” he said. David KimCEO of LG Energy Solution. “Capitalizing on our unmatched product portfolio, we will increase the value we provide to our customers, thereby achieving a strong leadership in the global battery market.”

About LG Energy Solution

LG Energy Solution (KRX: 373220), a spin-off from LG Chem, is a global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the world’s top battery-related patent holder with more than 58,000 patents. A strong global network, covering North America, Europe, and Asianincluding battery manufacturing facilities established through joint ventures with major automakers. Committed to building a sustainable battery ecosystem, LG Energy Solution it aims to achieve carbon neutrality in the value chain by 2050, while embodying the value of shared growth and promoting a diverse and inclusive corporate culture. To learn more about LG Energy Solutions ideas and innovations, visit https://news.lgensol.com.