Tesla Supplier LG Energy Solution Reports Record Earnings From EV and Energy Storage Batteries
Preliminary Q3 revenue grew 59% year-over-year to $7.21 billion as energy storage demand offset North American EV production slowdowns.
LG Energy Solution (LGES), a key battery supplier for Tesla and other major automakers, posted record quarterly earnings driven by surging demand for energy storage systems and strong electric vehicle sales in Europe.
What Happened
According to a regulatory filing in South Korea, LGES reported preliminary third-quarter revenue of $7.21 billion, a 59% year-over-year increase, with operating profit rising 25% to $565 million. The company attributed the growth to high demand for stationary energy storage batteries in the U.S., fueled by AI data centers and grid upgrades, alongside robust plug-in vehicle sales in Europe. LGES will disclose its full official results in November.
Why It Matters
The financial results highlight a strategic pivot for battery manufacturers who slowed North American EV production due to lower-than-expected demand. LGES has offset these losses by capitalizing on the energy storage market and leveraging U.S. Inflation Reduction Act manufacturing credits. The company continues to expand its North American footprint, having recently opened a $2 billion gigafactory in Lansing, Michigan, which produces lithium-iron-phosphate batteries for Tesla and nickel-manganese-cobalt batteries for Toyota. Additionally, LGES signed a multi-year offtake agreement with Elevra Lithium to secure 240,000 metric tonnes of raw lithium concentrate from a Quebec mine, further localizing its supply chain.
The Bottom Line
LG Energy Solution’s record earnings demonstrate the resilience of its diversified business model, balancing North American energy storage growth and European EV demand against a slowdown in the U.S. EV battery market, while maintaining critical production tax credits through 2032.
