October 28, 2024
Marija Maisch

From ESS News

LG Energy Solution (LGES) on Monday announced its third quarter 2024 consolidated revenue of KRW 22.18 billion ($323 million) and operating profit of KRW 751.9 billion, including the amount estimated IRA tax credit of KRW 466 billion.

Despite seeing a 39% drop in profits from last year amid sluggish demand for electric vehicles, the South Korean battery heavyweight reported a sizable increase in storage revenue energy, especially in the grid-scale market segment.

“Increased sales to major European automakers and increased production at our joint venture facilities in North America and Indonesia, as well as substantial growth in ESS revenue from network-wide projects, improved overall revenue compared to the previous quarter,” said Chang Sil Lee, Chief Financial Officer of LGES.

According to Lee, LGES also saw an improvement in operating profit quarter over quarter, excluding the effect of the IRA tax credit “due to the improvement in the utilization rate due to increased shipments of EV and ESS batteries, as well as reducing the burden of unit costs.” in line with the stabilization of metal prices.

The company said it expects “strong demand momentum,” particularly in power grid applications. Its plan is to actively respond to “long-term, high-volume projects in North America, leveraging its stable production know-how and local sourcing capacity, creating opportunities to generate stable revenues” .

“To maximize the benefits of policies supporting local manufacturing, the company will launch ESS battery production in the United States next year and will also consider converting electric vehicle production lines to ESS in response to demand from the European market,” the company said in its press release.

The announcement comes after the manufacturer earlier this year suspended construction of a battery production line for energy storage systems at its multibillion-dollar battery factory in the US state of Arizona. While affirming that the construction of its power cell production plant was continuing as planned, it described the decision as an adjustment in the pace of execution of planned investments based on market conditions.

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