Third-quarter results and new orders
LG Energy Solution (340,500 won, down 15,500 won or 4.35%) announced on November 3 that it recorded third-quarter revenue of 9.6434 trillion won and operating profit of 756 billion won in 2026.
Revenue increased 59.0% year on year, while operating profit rose 25.7%. Compared with the previous quarter, they increased 27.6% and 567.3%, respectively. The results included 416.9 billion won in North American production subsidies, including the Advanced Manufacturing Production Credit (AMPC) under the US Inflation Reduction Act (IRA). Excluding these subsidies, operating profit was 339.1 billion won, with an operating margin of 3.7%. The company thus remained profitable even without North American production subsidies.
Lee Chang-sil, vice president of LG Energy Solution, said, "Third-quarter company-wide revenue increased 28% sequentially as energy storage system (ESS) shipments rose sharply and both EV pouch and cylindrical products grew primarily through higher volumes. Operating profit reached 756 billion won, reflecting improved utilization at the Poland plant, continued supply volumes of cylindrical products and productivity improvements at new ESS mass-production sites."
In the third quarter of 2026, LG Energy Solution signed its first direct battery energy storage system (BESS) supply contract with a big tech company and became the only Korean battery company selected as an NVIDIA 'DSX Ready BESS Partner,' strengthening its position in the AI data center market. Additional order momentum is expected to continue in the fourth quarter, as the company is discussing supplies for new projects with multiple customers.
In its EV business, the company said it had secured a stable revenue base in the European EV market by signing a new agreement to expand supply volumes of next-generation high-voltage mid-nickel products.
Production and supply chains
The company also strengthened its production capabilities. In its North American ESS business, it brought additional cell production lines and new Link lines for assembling containerized systems into operation, improving local production stability and supply responsiveness. Strong customer demand for cylindrical EV batteries and the restart of its joint venture (JV) with General Motors (GM) in the United States helped improve company-wide utilization.
In its supply chain, the company strengthened its capacity to comply with Non-PFE (non-prohibited foreign entity) regulations by reinforcing medium- and long-term partnerships with existing lithium iron phosphate (LFP) cathode material suppliers and signing purchase agreements with new suppliers. It also secured a stable raw material procurement base by signing long-term supply agreements for locally sourced lithium with critical material companies in Canada and the United States.
Capacity expansion and next-generation products
To actively meet North American demand for ESS that satisfy local production and Non-PFE requirements, LG Energy Solution plans to secure more than 70 GWh of ESS production capacity by the end of 2027, adding new prismatic lines and other capacity to the more than 50 GWh planned by the end of 2026. It also plans to proceed with final preparations at its Arizona plant, its first North American cylindrical battery production base, as scheduled through the end of 2026.
In Europe, the company will strengthen its production portfolio in line with policies promoting local battery manufacturing and supply chains and the diversification of EV models. The Poland plant, where some EV production lines have been converted to ESS since 2025, is also scheduled to gain 46-series production capabilities from 2029. This will enable it to address automakers' diverse requirements, including low- and mid-priced pouch solutions and high-nickel cylindrical products.
At the Ochang Energy Plant in South Korea, the company will continue developing next-generation products and preparing for production. It will begin producing sodium-ion battery samples for ESS in 2026 and ship test products to North American customers in 2027. Mass production of LFP-based tabless 2170 cylindrical batteries is targeted for the first half of 2027. Lee said, "We plan to respond actively to market changes while strengthening our strategy of selection and focus to maximize operational efficiency with limited resources."
Original Korean article: Money Today
English brief by Korea Wind Intelligence, koreawindintel.com
