Battery firm LG Energy Solution Q1 profit plunges on weak EV sales

Battery cells with the logo of LG Energy Solution are displayed at the company headquarters in Seoul, South Korea, April 23, 2024. REUTERS/Kim Hong-Ji/File PhotoSEOUL : South Korean battery firm LG Energy Solution posted on Thursday a 75 per cent drop in quarterly profit, hit by weakening demand from electric vehicle sales.

The company, which supplies Tesla, General Motors and Volkswagen among other automakers, reported an operating profit of 157 billion won for the January-March period, versus a 633 billion won profit a year earlier. The company would have made a 32 billion won operating loss without a tax credit it received under the U.S. Inflation Reduction Act, LGES said in a regulatory filing.The result comes after its major customer Tesla reported a decline in quarterly sales and said it would accelerate the roll-out of more affordable EVs.

Shares of LGES were trading down 1.8 per cent, versus the benchmark KOSPI's 1.2 per cent fall as of 0024 GMT. We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be.

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