LG Energy Solution has swung back to profitability, driven by surging demand for energy storage systems that are offsetting continued weakness in its electric vehicle battery segment.
The development marks a significant shift for South Korea’s largest battery manufacturer, which had previously warned of a severe contraction in earnings due to sluggish EV adoption and intense price competition in the automotive supply chain.
This positive turn comes after the company forecast a 77% year-on-year collapse in second-quarter operating profit, down to 113 billion won ($73.
The company’s return to the black underscores a broader structural change in the battery industry.
While EV growth has moderated, the global push for grid modernization and renewable energy integration is accelerating demand for stationary storage solutions.
LG Energy Solution’s ability to capitalize on this trend suggests that the sector’s growth drivers are diversifying beyond the automotive vertical.
This positive turn comes after the company forecast a 77% year-on-year collapse in second-quarter operating profit, down to 113 billion won ($73.91 million), citing the EV headwinds.