LG Energy Solution (LGES), South Korea’s largest battery manufacturer, reported a second-quarter net loss on Thursday as slowing global electric vehicle (EV) demand and production disruptions at its U.S. battery plants weighed heavily on earnings.
The company posted a net loss of 328.6 billion won (US$228.4 million) for the April–June quarter, reversing from a net profit of 90.6 billion won recorded during the same period last year.
LGES said weaker EV sales in the North American market and the temporary suspension of operations at its U.S. battery joint venture plants significantly impacted quarterly performance. Ultium Cells LLC, the battery manufacturing partnership between LG Energy Solution and General Motors, halted production at its first plant in Ohio and its second facility in Tennessee in January as EV demand slowed.
Operating profit fell 77% year over year to 113.3 billion won, missing market expectations by a wide margin. Analysts surveyed by Yonhap Infomax had projected stronger operating earnings, while a consensus estimate for net profit was unavailable.
Despite weaker profitability, quarterly revenue increased 24.8% to 7.56 trillion won from 6.06 trillion won a year earlier, reflecting continued battery shipments and customer demand outside the slowing EV segment.
The company also disclosed that it received 241 billion won in tax credits through the Advanced Manufacturing Production Credit (AMPC) program under the U.S. Inflation Reduction Act. Excluding that incentive, LG Energy Solution would have reported an operating loss of 127.7 billion won for the quarter.
The difficult market conditions also affected the company’s first-half results. For the first six months of 2026, LGES posted a net loss of 1.27 trillion won, compared with a net profit of 317.2 billion won during the same period last year. It also reported an operating loss of 94.5 billion won, reversing from an operating profit of 866.8 billion won a year earlier.
First-half revenue, however, continued to grow, rising 10.5% year over year to 14.1 trillion won from 12.7 trillion won.
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The results highlight the ongoing challenges facing the global EV battery industry, as manufacturers contend with weaker consumer demand, excess production capacity, and slower-than-expected electric vehicle adoption in key markets. LG Energy Solution is expected to focus on improving operational efficiency and adjusting production as the industry works through the current slowdown.
