LG Energy Solution (LGES) recently reported a 75% drop in operating profit. The South Korean battery maker claimed slow EV sales impacted its operating profit.
LGES shared that its operating profit fell to $116 million in the first quarter. In comparison, the Asian battery maker reported an operating profit of about $470 million in Q1 2023.
In addition to its operating profit, LGES’ sales also dropped by 30% to $4.5 billion in the first quarter compared to $6.4 billion in Q1 2023.
In October 2023, LGES tempered 2024 revenue expectations, sharing concerns about high interest rates affecting electric vehicle sales. Tesla CEO Elon Musk shared similar concerns during an earnings call last year.
Despite concerns about slowing EV sales, LGES is strengthening its battery portfolio. Last month, the South Korean battery maker announced plans to invest in NCMA (nickel-cobalt-manganese-aluminum) and LFP (lithium-iron-phosphate) batteries. LGES also partnered with Envirostream, an Australian company, to recycle lithium-ion batteries.
If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.