LG Energy Solution Releases 2025 Financial Results

• LG Energy Solution posts KRW 23.7 trillion in consolidated revenue and KRW 1.3 trillion in operating profit in 2025
• Company aims for a mid-teen to 20 percent year-on-year increase in annual revenue and mid-single-digit percent operating profit margin this year
  –        Aim for more than 90GWh in new orders for ESS batteries and expand the ESS production capacity to over 60GWh, with more than 80 percent to be located in North America
  –        Expand EV battery product line-up, including LFP and high-voltage mid-nickel for mid-to-low-end market, LMR prismatic, and 46-Series cylindrical batteries
  –        Expand entry opportunities into new applications, including robotics, where company already supplies its cylindrical batteries to six global leading robotic companies, with more discussions for next-generation models underway

SEOUL, South Korea, Jan. 28, 2026 /PRNewswire/ — LG Energy Solution (KRX: 373220) today announced its fourth-quarter and full-year earnings for 2025, along with its key business initiatives for 2026.

For the full year, the company reported KRW 23.7 trillion in consolidated revenue, a 7.6 percent decrease from last year. The whole-year operating profit was KRW 1.3 trillion, marking a 133.9 percent year-on-year increase. The operating profit margin was 5.7 percent including the North American production incentive.

“Last year, we saw a solid growth in ESS sales as we proactively expanded our LFP production capacity in North America, but total revenue decreased due to the slowdown in major customers’ EV sales,” said Chang Sil Lee, CFO of LG Energy Solution. “Our profitability improved compared to the previous year, driven by enhanced product mix, improved material cost efficiency, as well as production incentive supported by stable sales performance in North America.” The company also improved its working capital efficiency by reducing inventory levels and optimizing supply chain management.

In 2025, LG Energy Solution has successfully optimized its asset management by: 1) reallocating capacity between EV and ESS to reduce new investments and boost idle-line utilization, 2) early establishment of production sites for mid-to-low-end solutions like high-voltage mid-nickel and LFP in Europe, and 3) enhancing capital management efficiency through sales of non-core assets, such as a building from its North American JV facility.

Last year, the company also successfully diversified both its production and customer bases. For its 46-Series cylindrical batteries, LG Energy Solution started production at the Ochang plant in Korea and secured an order backlog exceeding 300GWh (by the end of 2025). For its ESS batteries, the company started local production of its LFP^[1] batteries in North America and plans to expand the form factors from pouch-type to prismatic batteries. It also enhanced its production competitiveness through system integration (SI) capabilities, all of which contributed to 140GWh ESS order backlog.

In the fourth quarter, the company posted consolidated revenue of KRW 6.1 trillion, a 7.7 percent increase quarter-on-quarter. Its quarterly operating loss was KRW 122 billion, including the North American production incentive amount of KRW 332.8 billion.

• 2026 Key Business Initiatives

This year, LG Energy Solution anticipates year-on-year growth rate of over 10 percent in global EV production^[2] and over 40 percent in global ESS installations^[3]. In North America, ESS is expected to represent about half of total battery demand^[4] on the back of tech companies’ investment in data centers and policy support including the maintenance of clean energy investment tax credit (ITC). In particular, given that data centers require stable, long-term ESS projects, grid-scale ESS, which already accounts for 95 percent of ESS demand in the region, is expected to demonstrate strong growth this year.

To capitalize on the market growth, LG Energy Solution will advance its ESS business backed by solid orders. It aims to achieve more than 90GWh in new ESS orders this year, primarily through large-scale, long-term orders from key utility companies and developers in North America. It will also expand into new segments such as Uninterruptible Power Supply (UPS) and Battery Back-up Unit (BBU), while continuing to meet customer needs by delivering hardware and SI-based turnkey ESS solution.

At the same time, the company will reinforce its operational capabilities by increasing global ESS production capacity to over 60 GWh this year, with more than 80 percent of that capacity located in North America. To achieve this, it will proactively reallocate global production capacity to ESS battery manufacturing. In North America, it will expand ESS production capacity at the stand-alone facilities —specifically the plants in Holland and Lansing, Michigan—and will also temporarily utilize certain production lines from its joint ventures (Stellantis JV, Honda JV) for ESS output.

For its EV business, LG Energy Solution will continue to expand its product line-up tailored to customers’ needs. For mid-to-low-end market, the company will begin mass production of LFP and high-voltage mid-nickel batteries in the first quarter, while converting certain production lines to LMR^[5] prismatic cells within this year. For 46-Series cylindrical batteries, the company will boost fast charging performance and aims to start production of 46-Series cylindrical batteries at its new Arizona facility by late this year. Additionally, the company plans to expand its product line-up for HEVs^[6] from pouch-type to small batteries, as market demand for HEVs is expected to remain relatively stable.

This year, LG Energy Solution also plans to expand entry opportunities into new applications such as robotics, ships, and Urban Air Mobility (UAM). Notably, in the robotics market, where expectations for industrial humanoid robots are rising and thus batteries’ safety, energy density, and power output are becoming ever more important, the company is already supplying its cylindrical batteries to six global leading players, while also providing samples for their next-generation models with discussions underway on battery specs and mass production timeline.

At the same time, it will activate a pilot production line for LFP batteries with dry electrodes and secure mass production capabilities. Lastly, the company will focus on developing materials and manufacturing processes for the commercial production of all-solid-state and sodium batteries.

Based on its key business initiatives for this year, LG Energy Solution announced its goal to target a mid-teen to 20 percent year-on-year increase in annual consolidated revenue this year. Despite a slowdown in North American EV demand, it plans to maximize supply by leveraging relatively stable growth in the cylindrical battery business and already secured ESS order backlogs.

The company aims to achieve mid-single-digit percent operating profit margin and also increase the operating profit this year, by increasing ESS supply, pursuing stable operations, securing structural cost competitiveness, and improving operational efficiency.

At the same time, LG Energy Solution aims to reduce this year’s capex by over 40 percent compared to last year. By focusing on cash flow management, it will minimize new investments, maximize the utilization of existing lines, and prioritize key investments that are linked to revenue growth.

About LG Energy Solution

LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With more than 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 90,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com.

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SOURCE LG Energy Solution