LG Energy Solution Posts 756 Billion Won in Q3 Operating Profit, Driven by ESS

Revenue of 9.6434 trillion won, up 59% year-on-year
Higher ESS shipments and improved utilization at Polish plant

LG Energy Solution reported operating profit up 26% in the third quarter of 2026 from the same period in 2025, driven by increased energy storage system (ESS) shipments and expanded sales of electric vehicle batteries.

LG Energy Solution CI. LG Energy Solution

LG Energy Solution disclosed on Nov. 3 that it recorded consolidated revenue of 9.6434 trillion won and operating profit of 756 billion won in the third quarter of 2026.

Revenue increased 59% year-on-year and 27.6% quarter-on-quarter. Operating profit rose 25.7% year-on-year and 567.3% quarter-on-quarter. Operating profit included 416.9 billion won in production subsidies in North America.

Higher ESS shipments and increased sales of pouch-type and cylindrical batteries for electric vehicles contributed to the improved results. Improved utilization at the Polish plant and higher shipment volumes of cylindrical batteries also helped improve profitability. Higher productivity at new ESS production facilities also had a positive impact.

In its ESS business, the company signed its first direct battery energy storage system (BESS) supply contract with a global big tech company. It also broadened its business base in the AI data center market after becoming the only Korean battery company selected as an "NVIDIA DSX Ready BESS Partner."

In its electric vehicle battery business, the company signed a new agreement to increase supply volumes of its next-generation high-voltage mid-nickel products. In North America, it brought additional ESS cell production lines and containerized system assembly lines online. Overall plant utilization also improved, in part due to the restart of its joint-venture plant with General Motors (GM) in the United States.

LG Energy Solution plans to further expand its ESS production capacity. It aims to secure annual production capacity of more than 50 GWh in North America by the end of 2026, and increase that to more than 70 GWh by the end of 2027 by adding new prismatic battery production lines, among other measures. The company also plans to complete preparations to begin operations at its Arizona plant, its first cylindrical battery production hub in North America, by the end of 2026.

In Europe, the company will expand the range of products made at its Polish plant. After converting some electric vehicle battery production lines to ESS production starting in 2025, it also plans to secure production capacity for 46-series cylindrical batteries from 2029.

At its Ochang Energy Plant in South Korea, the company will continue developing next-generation batteries and preparing for mass production. It plans to ship test products of sodium-ion batteries to a North American customer in 2027 and begin mass production of lithium iron phosphate (LFP)-based tabless 2170 cylindrical batteries in the first half of 2027.

The company will also diversify its supply chain. To respond to U.S. regulations on non-prohibited foreign entities (Non-PFEs), it plans to expand its sources of LFP cathode materials and strengthen non-Chinese supply chains for key materials, including anode materials and electrolytes. It has also signed long-term lithium supply agreements with materials companies in Canada and the United States.

Lee Chang-sil, vice president and chief financial officer (CFO) of LG Energy Solution, said, "We plan to respond proactively to market changes while strengthening our strategy of making selective investments and focusing on key areas, maximizing the efficiency of our business operations with limited resources."

This content was produced with the assistance of AI translation services.