LG Energy Solution chalked up its best-ever sales in the third quarter of this year on the back of expanded energy storage system production capacity centering on the North American region.
If tax credits are excluded, LG Energy Solution is analyzed to have raked in approximately 300 billion won in operating profit, firing a starting salvo for a rebound in its business performance.
In an electronic notice issued by LG Energy Solution on Oct. 8, provisional figures showed that the company chalked up 756 billion won in the third quarter of the year, a 25.7 percent year-on-year surge over the same period of last year.
LG Energy Solution saw Q3 operating profit jump 567 percent compared to the previous quarter.
The company’s tax credit known as the Advanced Manufacturing Production Credit is expected to amount to 416.9 billion won, If the tax credit is excluded, LG Energy Solution’s Q3 operating profit is compiled at 339.1 billion won.
LG Energy Solution posted 9,643.4 billion won in Q3, a 59 percent year-on-year jump.
The figure was 27,6 percent surge over the previous quarter and the best-ever sales on a quarterly basis.
As the tax credit amount is excluded, the company saw Q3 sales amount to 9,226.5 billion won.
Continued supply growth of mid-nickel bound for Europe and a stable demand for cylindrical batteries targeting strategic consumption companies had a positive impact on the company’s business performance.
The resuming of a joint venture plant with GM in North America and the operating of a joint venture plant with Hyundai Motor also contributed to its sales growth.
As for the ESS business, expanded ESS production capacity in North America and increasing ESS shipments were also owed to a decrease in fixed expenses.
LG Energy Solution Partners With indiGOtech
LG Energy Solution announced on Oct. 1 that it signed a nonbinding memorandum of understanding with U.S.-based commercial electric vehicle startup indiGOtech to explore battery supply and technological collaboration.
indiGOtech is headquartered in Woburn, Massachusetts, and specializes in electrifying commercial van platforms for the North American market.
The company is developing an ecosystem that integrates vehicles, charging infrastructure, and digital services.
Under the MOU, the partners will work toward a final agreement for LG Energy Solution to supply 46-series NCM cylindrical battery cells from 2027 to 2030 for indiGOtech’s upcoming Flow Ride and Flow Cargo EVs.
The partners will support joint business development through vehicle-battery integration and performance verification efforts. To maximize vehicle performance, both companies intend to review opportunities to extend driving range and reduce charging times.
“Urban ride hail and delivery must electrify and automate at scale, but today’s electric vehicles are not designed for purpose, and are severely limited by the local charging infrastructure – that’s why vast majority of rides and deliveries are still driven by gas vehicles,” said Will Graylin, Chairman and CEO of indiGOtech.
“Working toward a long-term relationship with LG Energy Solution brings together advanced battery technology for durable economic advantage for vehicles, drivers and fleet operators.”
Oh Sung-hwan, Mobility & IT Battery Marketing Group Leader of LG Energy Solution, said: “Based on LG Energy Solution’s 46-series NCM cylindrical battery technology that boasts high energy density and rapid charging capabilities, we will closely collaborate with indiGOtech, which is successfully building the Transportation-as-a-Service (TaaS) ecosystem in the U.S.”
“Leveraging this partnership, we plan to enter the diverse commercial vehicle market in the U.S., including logistics, last-mile delivery, and ride-hailing.”
LG Energy Solution is also strengthening its competitiveness by securing additional customers for its 46-series cylindrical batteries.
The company reported that cylindrical battery shipments increased by 1.5 times year on year as of Q2, supported by stable mass production and expanded deliveries of its 46-series batteries.
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