On the 28th, LG Energy Solution fell 6% intraday on concerns about a slowdown in North American electric vehicle (EV) sales.
As of 10:10 a.m. that day, LG Energy Solution was trading at 411,500 won on the Korea Exchange, down 26,500 won (6.05%) from the previous session.
The share price drop is seen as driven by brokerages' projections that demand for North American EVs will be weak. Concerns have grown that sales could decline as the Inflation Reduction Act (IRA) tax benefits expire.
Jeong Jin-su, a researcher at Heungkuk Securities, analyzed that "despite the positive effects of a stronger dollar and brisk sales of small batteries and energy storage systems (ESS), the slowdown in U.S. EV sales has materialized, and the amount of the Advanced Manufacturing Production Credit (AMPC) in the U.S. is expected to decrease 8% from the previous quarter, leading to a swing to a loss."
Jeong Gyeong-hee, a researcher at LS Securities, also said, "With the '30D tax credit' under the IRA ending at the end of this year, sales of secondary batteries for electric vehicles will decline from the fourth quarter through 2026," adding, "As a result, revenue in 2025 and 2026 will decrease."
However, Jeong assessed that the ESS institutional sector has a clear growth trend. Jeong predicted, "Within the United States, the expansion of artificial intelligence (AI) services and demand for data center ESS will increase 67% in 2026 from a year earlier."
Jeong explained, "However, when this growth rate is converted to the actual battery demand size (GWh), it is about 10 GWh, which is still small compared with the overall U.S. ESS market or LG Energy Solution's total production capacity (CAPA)."