LG Energy Solution Releases 2026 First-Quarter Financial Results

• LG Energy Solution posts KRW 6.6 trillion in consolidated revenue and KRW 207.8 billion in operating loss in Q1 2026
• In Q1, the company secured over 100GWh of new orders for its 46-Series cylindrical EV batteries, with the order backlog exceeding 440GWh as of April
• Its North American ESS battery production network is now in place, with the aim to achieve more than 50GWh production capacity by year-end

SEOUL, South Korea, April 29, 2026 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced its first-quarter earnings for 2026, reporting an increased quarterly revenue mainly driven by stable demand and solid orders for both 46-Series cylindrical EV batteries and ESS batteries.                                                              

The company posted consolidated revenue of KRW 6.6 trillion, a 1.2 percent increase quarter-on-quarter. The revenue includes the North America production incentive, which is estimated at KRW 189.8 billion. The operating deficit stood at KRW 207.8 billion.

In the first quarter, shipment of pouch-type EV batteries declined due to inventory adjustments by a major North American customer. However, stable shipments of cylindrical EV batteries and active response to growing North American ESS demand through capacity expansion resulted in a slight quarter-on-quarter increase in the revenue, with the ESS business now representing mid-20 percent of the total revenue.

At the same time, despite increase in shipments of both cylindrical EV and ESS batteries and ongoing cost-reduction efforts, the company posted a quarterly loss, driven by initial ramp-up costs associated with the expansion of ESS production sites and deterioration of product mix resulting from reduced sales of pouch-type EV batteries in North America.

• Q1 Achievements                                               

In the first quarter, LG Energy Solution fully leveraged its local manufacturing capabilities in North America and the product competitiveness of its 46-Series cylindrical EV batteries to win over 100GWh of new orders for the product, bringing its total order backlog to over 440GWh (as of the end of April 2026). The company started producing 4695 cells at its Ochang facility late last year and will start producing diverse 46-Series cylindrical cells, ranging from 4680 to 46120 cells, at its Arizona facility late this year.

It also secured an additional ESS battery supply contract for grid-scale project in North America. Under the contract, the company will start supplying its next-generation product, which has reduced total cost by 15 percent compared to its current ESS LFP products, in 2028. Through such projects, the company is actively responding to growing customer demand for ESS batteries produced locally in the United States.

In addition, the company has successfully established its ESS battery production network in North America, comprising three standalone facilities (Holland, Lansing, Windsor) and two joint venture facilities (Ultium Cells facility in Tennessee and L-H Battery Company in Ohio). Leveraging this robust production network, the company will secure over 50GWh of ESS battery production capacity in the region by the end of this year.

• Key Initiatives

As electricity consumption rises, driving the need for a more stable power grid amid the possibility of prolonged energy supply instability and high oil prices, the importance of ESS is emerging as a key component of power infrastructure that can offset the limitations of traditional power sources. This environment may also boost consumer demand for EVs, supported by their improving total cost of ownership relative to ICE vehicles, as well as advances in autonomous driving technologies.

Also, the U.S. and Europe continue to require local battery production to qualify for government incentives, which is increasing the customers' preference for companies that can manufacture locally—enabling them to maximize policy benefits and respond swiftly to logistics risks.

In light of these circumstances, the company will focus on four areas going forward:

1. Strengthening cash flow management

• Improve financial structure through EBITDA growth, divestment of non-core assets, and enhanced asset turnover
• Execute Capex only for essential investments and best allocate strategic resources

2. Maximizing response to customer demand

• ESS: actively secure new projects for power infrastructure and data centers, and promptly stabilize North American production facilities
• EV: proactively respond to EV demand recovery, leverage global production sites to respond to a solid demand for cylindrical EV batteries

3. Stabilizing the supply chain

• Enhance monitoring for all raw materials and advance proactive sourcing strategies
• Minimize logistics costs impacts by securing shipping capacity in advance, etc.

4. Reinforcing product competitiveness

• Advance product specs: system integration (SI)-based software for ESS, fast charging for EVs
• Secure next-generation technologies: dry electrode processing, all-solid-state batteries, sodium-ion batteries

About LG Energy Solution

LG Energy Solution (KRX: 373220) is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With more than 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 90,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution's ideas and innovations, visit https://news.lgensol.com.

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SOURCE LG Energy Solution