Autobayng News Team
- Published On Apr 8, 2026 at 11:59 AM IST
The quarterly earnings guidance includes tax credits provided under the US Inflation Reduction Act for the company’s battery production in the US.“>
South Korean battery maker LG Energy Solution (LGES) said on Tuesday it expects to post a first-quarter operating loss of 208 billion won ($138.16 million), as weaker demand from electric vehicles (EVs) makers weighed on earnings. That compared with an LSEG SmartEstimate forecast of a 160 billion wonloss, which was weighted toward analysts who are more consistently accurate.
LGES, which supplies Tesla, General Motors and Hyundai Motor among others, has been grappling with weaker EV battery demand, with one of its major customers GM idling a Detroit EV plant until April.
Revenue would likely fall 2.5 per cent to 6.6 trillion won from a year earlier, LGES said.
The quarterly earnings guidance includes tax credits provided under the US Inflation Reduction Act for the company’s battery production in the United States, LGES said in a regulatory filing. Excluding the credits, LGES would have posted an operating loss of 398 billion won.
To offset weakness in EV batteries, LGES is focusing on growing demand for energy storage systems (ESS), driven by rising electricity needs for AI data centres.
In February, LGES said it aims to triple its ESS revenue this year from a year earlier. Nomura estimated the company’s ESS revenue at about 2.8 trillion won in 2025.
Analysts also said a US House bill, the CHARGE Act, introduced last month to ban imports of certain Chinese-made energy storage systems, could create opportunities for South Korean battery makers. The bill cite concerns that energy storage systems manufactured in China and imported to the United States may include remote monitoring capabilities.LGES is set to report details earnings on April 30.
- Published On Apr 8, 2026 at 11:59 AM IST
Join the community of 2M+ industry professionals.
Subscribe to Newsletter to get latest insights & analysis in your inbox.
All about ETAuto industry right on your smartphone!
- Download the ETAuto App and get the Realtime updates and Save your favourite articles.
