South Korean battery maker LG Energy Solution (LGES) expects a first-quarter operating loss of 208 billion won ($138 million) due to weaker demand from electric vehicle (EV) manufacturers. This is higher than the LSEG SmartEstimate forecast of 160 billion won.
- Customers: Supplies Tesla, General Motors, and Hyundai Motor; GM has idled a Detroit EV plant until April.
- Revenue: Expected to decline 2.5% to 6.6 trillion won year-on-year.
- Government Credits: Includes U.S. Inflation Reduction Act tax credits; without these, the operating loss would have been 398 billion won.
- Strategic Shift: LGES aims to offset EV battery weakness by growing energy storage systems (ESS) revenue, targeting a threefold increase in 2026. Rising demand for AI data centers and potential U.S. policy barriers to Chinese ESS imports could benefit the company.
LGES is scheduled to report full Q1 earnings on April 30, 2026.
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