The South Korean battery maker sees a 19% revenue drop and a $158 million operating loss in Q4.
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| LG Energy Solution's operating loss of $158 million marks a significant shift as the EV market faces headwinds. Image: LGEnSol |
Seoul, South Korea — Jan 24, 2025:
LG Energy Solution (LGES), the South Korean battery manufacturer, posted a quarterly loss for the first time in three years, driven by a decline in electric vehicle (EV) demand.
For the October-December period, the company recorded an operating loss of 226 billion won ($158 million), compared to a profit of 338 billion won during the same period last year.
Revenue for the quarter also fell by 19% year-on-year, reaching 6.45 trillion won. LGES, which supplies batteries to major automakers such as Tesla, General Motors, and Hyundai Motor, attributed the drop to sluggish demand in the EV sector.
Earlier this month, CEO Kim Dong-myung had projected a recovery in the EV market after 2026 but warned of mounting challenges, particularly with the global rise of Chinese competitors.
Despite the disappointing results, LGES shares saw a modest 0.14% increase, outperforming the broader KOSPI index, which rose by 0.6%.