LG Energy Solution swung to a first-quarter net loss due to weakening global electric vehicle battery demand. The company reported a 944 billion won ($635.8 million) loss, reversing a profit from a year earlier. It plans to expand its energy storage system business for a more balanced portfolio.
LG Energy Solution Ltd. announced on April 30 that it recorded a net loss of 944 billion won ($635.8 million) in the first quarter of 2026, swinging from a 227 billion won profit a year earlier, due to weakening global demand for electric vehicle (EV) batteries. Operating loss stood at 207.8 billion won, down from an operating profit of 374.7 billion won, while sales fell 2.5 percent to 6.55 trillion won from 6.72 trillion won.
"Lower sales of EV batteries to key customers and higher costs associated with the initial ramp-up of an energy storage system (ESS) plant in the United States weighed on quarterly performance," a company official said. Last month, the company converted part of its EV battery production line at the Ultium Cells plant in Tennessee to produce ESS systems.
During a conference call, LG Energy Solution said it secured a contract for more than 100 gigawatt-hours (GWh) of 46-series cylindrical batteries in the first quarter, boosting its order backlog to over 440 GWh. Market watchers speculate the deal may involve next-generation EVs from BMW, potentially supplying around 10 GWh annually for up to 10 years. Chief Executive Kim Dong-myung stated the company aims to raise the share of ESS and new businesses to the mid-40 percent range from around 20 percent currently.
