As the slowdown in the North American electric vehicle market continues, LG Energy Solution has reported continued financial pressure, posting an operating loss of more than 200 billion won in the first quarter of this year. This marks the company’s second straight quarterly loss following a deficit in the previous quarter, reflecting weaker EV demand and reduced profitability from policy-driven incentives.
Looking ahead, LG Energy Solution is aiming for a recovery in the second quarter by expanding its order pipeline, particularly in next-generation EV batteries and Energy Storage System projects. In the first quarter alone, the company secured over 100 GWh of new orders for its advanced 46-series batteries, pushing its total order backlog above 440 GWh. A major highlight is a long-term supply agreement with BMW for its upcoming electric vehicle platform, estimated to be worth over 10 trillion won across a supply period of around ten years. This deal marks a significant expansion of LG Energy Solution’s global customer base alongside existing partnerships with major automakers.
The company’s 46-series battery lineup is being positioned as its next flagship technology, offering significantly higher energy capacity and output compared to earlier battery formats, along with improved efficiency and space utilization. Mass production is being scaled through facilities in Korea and a new plant in the United States, both designed to meet rising global demand. Alongside EV batteries, the Energy Storage System segment is also emerging as a key growth driver, now contributing a substantial share of total sales. Recent large-scale contracts, including supply deals in North America, are expected to strengthen profitability, especially with the introduction of more cost-efficient lithium iron phosphate based ESS products.
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