LG Energy Solution Releases 2025 Financial Results

• LG Vitality Solution posts KRW 23.7 trillion in consolidated income and KRW 1.3 trillion in working income in 2025
• Company objectives for a mid-teen to twenty percent 300 and sixty five days-on-300 and sixty five days expand in annual income and mid-single-digit percent working income margin this 300 and sixty five days
  –        Aim for bigger than 90GWh in original orders for ESS batteries and expand the ESS manufacturing means to over 60GWh, with bigger than 80 percent to be positioned in North The United States
  –        Develop EV battery product line-up, alongside with LFP and excessive-voltage mid-nickel for mid-to-low-terminate market, LMR prismatic, and 46-Series cylindrical batteries
  –        Develop entry opportunities into original functions, alongside with robotics, where company already offers its cylindrical batteries to six world main robotic companies, with more discussions for next-generation objects underway

, /PRNewswire/ — LG Vitality Solution (KRX: 373220) on the present time announced its fourth-quarter and whole-300 and sixty five days earnings for 2025, alongside with its key substitute initiatives for 2026.

For the rotund 300 and sixty five days, the corporate reported KRW 23.7 trillion in consolidated income, a 7.6 percent lower from closing 300 and sixty five days. Your whole-300 and sixty five days working income was KRW 1.3 trillion, marking a 133.9 percent 300 and sixty five days-on-300 and sixty five days expand. The working income margin was 5.7 percent alongside with the North American manufacturing incentive.

“Final 300 and sixty five days, we saw a stable enhance in ESS sales as we proactively expanded our LFP manufacturing means in North The United States, but full income reduced attributable to the slowdown in foremost prospects’ EV sales,” stated Chang Sil Lee, CFO of LG Vitality Solution. “Our profitability improved when when compared with the old 300 and sixty five days, pushed by enhanced product combine, improved topic topic charge effectivity, as effectively as manufacturing incentive supported by stable sales performance in North The United States.” The company moreover improved its working capital effectivity by reducing stock ranges and optimizing supply chain management.

In 2025, LG Vitality Solution has efficiently optimized its asset management by: 1) reallocating means between EV and ESS to within the reduction of original investments and boost idle-line utilization, 2) early establishment of manufacturing web sites for mid-to-low-terminate alternatives admire excessive-voltage mid-nickel and LFP in Europe, and 3) bettering capital management effectivity by sales of non-core sources, similar to a constructing from its North American JV facility.

Final 300 and sixty five days, the corporate moreover efficiently varied both its manufacturing and customer bases. For its 46-Series cylindrical batteries, LG Vitality Solution started manufacturing on the Ochang plant in Korea and secured an uncover backlog exceeding 300GWh (by the terminate of 2025). For its ESS batteries, the corporate started local manufacturing of its LFP^[1] batteries in North The United States and plans to expand the originate factors from pouch-form to prismatic batteries. It moreover enhanced its manufacturing competitiveness by intention integration (SI) capabilities, all of which contributed to 140GWh ESS uncover backlog.

In the fourth quarter, the corporate posted consolidated income of KRW 6.1 trillion, a 7.7 percent expand quarter-on-quarter. Its quarterly working loss was KRW 122 billion, alongside with the North American manufacturing incentive amount of KRW 332.8 billion.

• 2026 Key Enterprise Initiatives

This 300 and sixty five days, LG Vitality Solution anticipates 300 and sixty five days-on-300 and sixty five days enhance charge of over 10 percent in world EV manufacturing^[2] and over 40 percent in world ESS installations^[3]. In North The United States, ESS is anticipated to declare about half of full battery inquire^[4] on the attend of tech companies’ investment in info companies and coverage toughen alongside with the maintenance of effectively-organized energy investment tax credit rating (ITC). In particular, given that info companies require stable, lengthy-time length ESS projects, grid-scale ESS, which already accounts for 95 percent of ESS inquire within the gap, is anticipated to illustrate stable enhance this 300 and sixty five days.

To capitalize on the market enhance, LG Vitality Solution will advance its ESS substitute backed by stable orders. It objectives to develop bigger than 90GWh in original ESS orders this 300 and sixty five days, basically by effectively-organized-scale, lengthy-time length orders from key utility companies and developers in North The United States. This may perhaps presumably moreover expand into original segments similar to Uninterruptible Vitality Provide (UPS) and Battery Motivate-up Unit (BBU), while continuing to fulfill customer needs by turning in hardware and SI-basically based turnkey ESS resolution.

On the an identical time, the corporate will pork up its operational capabilities by increasing world ESS manufacturing means to over 60 GWh this 300 and sixty five days, with bigger than 80 percent of that means positioned in North The United States. To develop this, this may perhaps presumably proactively reallocate world manufacturing means to ESS battery manufacturing. In North The United States, this may perhaps presumably expand ESS manufacturing means on the stand-alone companies —namely the plant life in Holland and Lansing, Michigan—and need to moreover snappy carry out basically the most of sure manufacturing traces from its joint ventures (Stellantis JV, Honda JV) for ESS output.

For its EV substitute, LG Vitality Solution will proceed to expand its product line-up tailored to prospects’ needs. For mid-to-low-terminate market, the corporate will originate mass manufacturing of LFP and excessive-voltage mid-nickel batteries within the first quarter, while changing sure manufacturing traces to LMR^[5] prismatic cells within this 300 and sixty five days. For 46-Series cylindrical batteries, the corporate will boost snappy charging performance and objectives to originate manufacturing of 46-Series cylindrical batteries at its original Arizona facility by uninteresting this 300 and sixty five days. Additionally, the corporate plans to expand its product line-up for HEVs^[6] from pouch-form to small batteries, as market inquire for HEVs is anticipated to stay slightly stable.

This 300 and sixty five days, LG Vitality Solution moreover plans to expand entry opportunities into original functions similar to robotics, ships, and Urban Air Mobility (UAM). Notably, within the robotics market, where expectations for industrial humanoid robots are rising and thus batteries’ safety, energy density, and energy output are becoming ever more important, the corporate is already supplying its cylindrical batteries to six world main gamers, while moreover providing samples for his or her next-generation objects with discussions underway on battery specs and mass manufacturing timeline.

On the an identical time, this may perhaps presumably activate a pilot manufacturing line for LFP batteries with dry electrodes and stable mass manufacturing capabilities. Lastly, the corporate will specialise in increasing offers and manufacturing processes for the commercial manufacturing of all-stable-verbalize and sodium batteries.

Constant with its key substitute initiatives for this 300 and sixty five days, LG Vitality Solution announced its blueprint to specialise in a mid-teen to twenty percent 300 and sixty five days-on-300 and sixty five days expand in annual consolidated income this 300 and sixty five days. Despite a slowdown in North American EV inquire, it plans to maximise supply by leveraging slightly stable enhance within the cylindrical battery substitute and already secured ESS uncover backlogs.

The company objectives to develop mid-single-digit percent working income margin and moreover expand the working income this 300 and sixty five days, by increasing ESS supply, pursuing stable operations, securing structural charge competitiveness, and bettering operational effectivity.

On the an identical time, LG Vitality Solution objectives to within the reduction of this 300 and sixty five days’s capex by over 40 percent when when compared with closing 300 and sixty five days. By focusing on money drift management, this may perhaps presumably lower original investments, maximize the utilization of present traces, and prioritize key investments which are linked to income enhance.

About LG Vitality Solution

LG Vitality Solution (KRX: 373220) is a number one world manufacturer of lithium-ion batteries for electric autos, mobility, IT, and energy storage techniques. With bigger than 30 years of abilities in modern battery technology and extensive analysis and constructing (R&D), the corporate is the tip battery-connected patent holder within the area with over 90,000 patents. Its strong world network, which spans North The United States, Europe, and Asia, entails battery manufacturing companies established by joint ventures with foremost automakers. Committed to constructing sustainable battery ecosystem, LG Vitality Solution objectives to develop carbon neutrality at some stage in its charge chain by 2050, while embodying the charge of shared enhance and selling various and inclusive corporate custom. To be taught more about LG Vitality Solution’s options and enhancements, visit https://info.lgensol.com.

SOURCE LG Vitality Solution