LG Energy Solution Ltd. has announced its third-quarter financial results for 2025, reporting consolidated revenue of KRW 5.7 trillion and an operating profit of KRW 601.3 billion, marking a 22.2% rise in operating profit quarter-on-quarter and a 10.5% profit margin. The company attributed this improvement to robust ESS battery production, new EV model launches, and sustained cost-reduction initiatives.
Despite a temporary dip in EV pouch-type battery demand following the expiration of the U.S. EV subsidy, LG Energy Solution maintained stable revenue growth, driven by increased energy storage system (ESS) output at its Michigan plant and rising demand for its 46-Series cylindrical batteries in the EV and IT sectors.
Record ESS and Cylindrical Battery Backlog
By the end of Q3 2025, LG Energy Solution had secured an ESS battery order backlog of approximately 120GWh and over 300GWh for its 46-Series cylindrical batteries. The company also signed new supply agreements for both residential and grid-scale ESS projects, strengthening its foothold in non-China-dependent supply chains.
Additionally, LG Energy Solution has expanded its North American operations, including its joint venture facility with Stellantis in Canada, which is now ready to start battery cell production. The plant is also exploring new applications beyond electric vehicles.
Advancing Next-Gen Battery Technologies
A major technological breakthrough in the quarter included the development of quick-charging lithium metal batteries and the establishment of a local lithium supply chain in the U.S. through an offtake agreement securing up to 40,000 tons of lithium carbonate.
Looking ahead, the company anticipates a short-term slowdown in the U.S. EV market but expects rising demand for hybrid (HEV) and extended-range electric vehicles (EREV) as automakers recalibrate their electrification strategies. Meanwhile, the European EV and ESS markets are expected to see steady growth, supported by EV incentives, renewable energy expansion, and reduced reliance on Chinese suppliers.
Diversified Battery Portfolio for Every Segment
During its earnings briefing, LG Energy Solution outlined plans to tailor its product mix to diverse market needs:
- Performance segment: High-nickel NCMA pouch-type and 46-Series cylindrical batteries for high power and fast charging.
- Standard segment: High-voltage mid-nickel NCM batteries for balanced performance.
- Affordable segment: LFP pouch-type batteries, with dry electrode technology to lower costs.
- Mid-to-low-end EVs: Under-development LMR prismatic batteries, reinforcing LGES’s unique capability to supply pouch, cylindrical, and prismatic formats across chemistries.
Strengthening ESS Leadership
To capture the booming global ESS demand, LG Energy Solution will accelerate the transition of production capacity from EV to ESS, boosting operational efficiency while optimizing asset utilization. The company is also developing high-density, long pouch-type ESS batteries and plans to introduce ESS LFP prismatic batteries by 2027.
We’re strategically adapting to evolving market dynamics while expanding our ESS and cylindrical battery portfolios,” said an LG Energy Solution spokesperson. “Our focus remains on operational excellence, sustainable growth, and advanced battery technologies that meet future mobility and energy demands.
By reinforcing its AI-driven automation (AX) and digital transformation (DX) initiatives, LG Energy Solution continues to streamline operations, improve cost structures, and strengthen its position as a global leader in battery innovation and energy transition.
