- LG Energy Solution posts KRW 25.6 trillion in consolidated revenue and KRW 575.4 billion in operating profit in 2024
- Company to focus on proactively responding to market volatilities in the short term and securing fundamental competitiveness in the mid-to-long term
- This year’s guidance forecasts a 5-10 percent year-on-year increase in annual revenue, with capital expenditure expected to be reduced by 20-30 percent compared to last year
LG Energy Solution has announced its fourth-quarter and full-year earnings for 2024, along with its key business initiatives for 2025.
For the full year, the company reported KRW 25.6 trillion in consolidated revenue and KRW 575.4 billion in operating profit, a year-on-year decrease of 24.1 percent and 73.4 percent, respectively. The operating profit margin was 2.2 percent, including the IRA tax credit effect.
“Last year, we actively responded to EV demand in North America,” said Chang Sil Lee, CFO of LG Energy Solution. “At the same time, sales in Europe decreased due to slow EV market growth, while average selling price (ASP) also declined because of continued metal price impact, leading to a decrease in our full-year revenue.”
“Although a lower utilization rate led to increased fixed costs and lower profitability, we saw continued improvements in material cost ratio last year,” Lee said.
In 2024, LG Energy Solution initiated the stable mass production its new joint venture plants in the U.S., Canada, and Indonesia, and achieved the record-high yield, securing capabilities for a stable global operation. In terms of the EV business, the company successfully expanded its product lineup with new chemistries and form factors, and also expanded its ESS business by accelerating its intake of large-scale power grid projects in North America.
Last year marked a year of technological advancement for LG Energy Solution, as it prepared for the mass production of its 46-Series cylindrical batteries and pilot production line for dry electrodes in Ochang, Korea. In addition, the company secured high-quality, IRA-compliant critical minerals and LFP cathode materials by taking various proactive measures, such as investing in a lithium mining company.
In the fourth quarter, the company posted consolidated revenue of KRW 6.4512 trillion, a 6.2 percent decrease quarter-on-quarter. Its quarterly operating loss was KRW 225.5 billion, including the estimated IRA tax credit amount of KRW 377.3 billion.
2025 Market Forecast
The global battery market, encompassing the EV, ESS, and IT sectors, is expected to grow by over 20 percent annually starting in 2025.
For the EV market, the company expects its first-mover advantages in the North American battery market to continue to expand, driven by the growing trend of protectionism. At the same time, the increasing volatility of green policies in major countries is expected to decelerate the growth of EV demand in the short term.
Regarding the ESS market, LG Energy Solution foresees an increasing need for regional renewable energy infrastructure thanks to the emerging importance of energy security. The company also expects power demand to surge on the back of the expansion of AI-driven data centers and predicts securing local battery supplies will become ever more critical in response to the higher tariffs on batteries from China set to take effect in 2026.
2025 Key Business Initiatives
LG Energy Solution plans to enhance financial stability by adjusting investment timelines and prioritizing critical projects while maximizing existing capacity through new LFP and mid-nickel battery orders. The company will improve operational flexibility by diversifying form factors and converting production lines between EV and ESS batteries to meet market demands.
In the mid-to-long term, LG aims to strengthen competitiveness by offering optimized EV solutions, enhancing LFP batteries for ESS, and improving product quality with AI-based management systems. It will also focus on cost reduction through automation, upstream investments, and material optimization. Future efforts include commercializing dry electrodes and lithium-sulfur batteries while expanding into BaaS and EaaS solutions.
For 2025, LG targets a 5-10% revenue growth, driven by new North American plants and increased product shipments despite low metal prices. The company also plans to cut capex by 20-30% by optimizing investment strategies and site utilization. With new facilities coming online, LG expects to achieve 45-50GWh of IRA tax credit-eligible capacity this year.
