- LG Energy Solution posts KRW 7.6 trillion in consolidated revenue and KRW 113.3 billion in operating profit in Q2 2026
- First-half year revenue marked 10% YoY increase, with ESS revenue increasing 4.6 times and now accounting for high-20% range of total revenue
- The company to leverage its extensive global manufacturing footprint and diverse product lineup to capitalize on opportunities in the ESS and 46-Series EV battery markets
SEOUL, South Korea, July 29, 2026 /PRNewswire/ -- LG Energy Solution (KRX: 373220) today announced its second-quarter earnings for 2026, alongside a positive first-half performance buoyed by strong ESS revenue.
The company posted consolidated revenue of KRW 7.6 trillion, a 15.3% increase quarter-on-quarter. The revenue includes the North America production incentive of KRW 241 billion, reflecting a quarter-on-quarter increase driven by ESS shipments. The operating profit was KRW 113.3 billion, with the operating profit margin at 1.5%.
Quarterly revenue growth was supported by increased shipment of pouch-type EV batteries to the European market, stable demand for cylindrical EV cells from strategic customer, and increased ESS volume driven by the phased capacity expansion in North America.
In addition, the company turned profitable thanks to the increased sales mix of cylindrical EV cells, improved utilization rates in Europe, and a gradual reduction in fixed-cost burden driven by increased ESS production in North America.
1H Progress
In the first half of the year, LG Energy Solution reported revenue of KRW 14.1 trillion, marking a 10.5% year-on-year increase, with ESS accounting for the high-20% range of total revenue.
- (ESS) Driven by the strategic utilization of five North American production sites and active response to surging demand, ESS business achieved 4.6x year-on-year revenue growth and secured new orders exceeding KRW 3 trillion. Furthermore, Ultium Cells (GM JV) Tennessee and L-H Battery (Honda JV) have successfully commenced production of ESS cells.
- (EV) Mid-to-low price solutions accounted for over mid-30% of total EV pouch battery sales volume in the first half. Cylindrical battery shipments including 46-Series were boosted by 1.5x year-on-year. Consequently, the company secured three consecutive quarters of shipment increase and improved utilization rates across Europe and Asia.
Market Trend and Strategic Direction
[ESS]
- Trend: Rising power demand and sustained investment in AI infrastructure are driving growth across both Front-of-the-Meter (FTM)[1] and Behind-the-Meter (BTM)[2] sectors. Specifically, as ESS has become an essential component to reduce power load volatility, and UPS[3] and BBU[4] have become critical parts for data centers, the scope of ESS applications is getting significantly expanded.
- Direction: LG Energy Solution will leverage its position as North America's largest ESS manufacturer to meet non-PFE requirements and strengthen its product lineup (BESS, UPS, BBU) for power grids and data centers. Also, by establishing system integration as a key competitive advantage, the company aims to deliver comprehensive end-to-end solutions, from cell supply to software.
[EV]
- Trend: Demand for 46-Series cylindrical batteries is increasing as thermal safety regulations tighten and next-generation vehicles increasingly adopt structural battery integration.
- Direction: The company will leverage its global manufacturing footprint to supply locally produced 46-Series cells and offer a diverse product lineup that ensures flexible vehicle designs for customers. Technical advances will also follow—including 10-minute fast charging and battery pack designs to further enhance safety.
2H Action Plan
- ESS: Optimize operations in North America to enhance profitability, expand the order momentum through securing renewable-linked ESS projects and data center infrastructure projects.
- EV: Prepare for the start of production at the Arizona facility, as well as stable operation of EV pouch production lines across North America and Europe, which will lead to new orders for 46-Series cylindrical batteries and enhanced mid-nickel products.
- Future-preparedness: Deliver high-power tabless 2170 batteries, accelerate product development and prepare production lines for sodium-ion ESS batteries, set up a pilot production line for all-solid-state batteries utilizing dry electrode processes.
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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 100,000 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.
[1] Front-of-the-Meter (FTM): power supply (e.g. power generation, transmission, distribution) [2] Behind-the-Meter (BTM): power consumption (e.g. commercial facilities, industrial plants) [3] UPS: Uninterruptible Power Supplies [4] BBU: Battery Backup Units |
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SOURCE LG Energy Solution
