LG Energy Solution said on the 30th that its first-quarter sales on a consolidation basis fell 2.5% on-year to 6.555 trillion won and it swung to an operating loss of 207.8 billion won. North American production subsidies reflected in the first-quarter results totaled 189.8 billion won.
Vice President Lee Chang-sil of LG Energy Solution said, "Despite weak electric vehicle (EV) demand in North America, we actively responded to demand for energy storage systems (ESS) and cylindrical batteries, and sales rose 1.2% from the previous quarter," adding, "In particular, ESS expanded its share to the mid-20% range of companywide sales, continuing meaningful sales growth."
LG Energy Solution expanded new orders across all business areas of EVs and ESS in the first quarter of this year. In the EV business, it secured more than 100 GWh of new orders for the 46 series. In the ESS business, on Feb. it additionally signed a supply contract for a North American power grid project with an existing strategic customer, sustaining its new order momentum.
On the operations side, in Mar., at the Ultium Cells Tennessee plant, it decided to convert part of the existing EV line to ESS, securing a total of five production bases in North America alone. Through this, it plans to secure more than 50 GWh of ESS production capacity by the end of the year.
LG Energy Solution announced key action plans to respond to a rapidly changing market environment, including ▲ strengthening cash flow ▲ maximizing demand response ▲ stabilizing the supply chain ▲ enhancing product competitiveness.
LG Energy Solution President Kim Dong-myung said, "What matters most in this period of change redefining the battery industry is judging the right direction and opportunities," and "We will accelerate growth based on meticulous strategy and high-intensity execution to preempt the future market."