LG Energy Solution reported revenue of KRW 9.6 trillion and operating profit of KRW 756 billion for the third quarter of 2026, according to financial results released on November 3. Revenue increased 27.6% from the previous quarter and included KRW 416.9 billion in North American production incentives. The company recorded an operating margin of 7.8%.
The improvement was supported by higher energy storage system (ESS) shipments, increased deliveries of electric vehicle batteries and better production utilization across several facilities.
ESS and EV Battery Shipments Support Revenue Growth
LG Energy Solution attributed its third-quarter revenue increase primarily to a significant rise in ESS shipments and higher deliveries of EV pouch-type batteries, particularly high-voltage mid-nickel products.
The company also continued supplying 21-Series and 46-Series cylindrical batteries for electric vehicles.
Operating profit benefited from improved utilization at its European manufacturing facilities, growing cylindrical battery volumes and a reduced fixed-cost burden as North American ESS production capacity gradually stabilized.
During the quarter, LG Energy Solution highlighted several developments across its business segments.
In the ESS market, the company secured its first direct-supply behind-the-meter battery energy storage system (BESS) project for a major technology customer. It also qualified as an NVIDIA DSX Ready BESS partner.
For EV batteries, LG Energy Solution increased production volumes and extended supply periods under existing European contracts for its second-generation high-voltage mid-nickel products.
Manufacturing and Supply Chain Developments
The company continued expanding and adjusting its manufacturing operations during the third quarter.
In North America, developments included a new link production line in Arizona, phased expansion of battery pack capacity in Ohio and the resumption of operations at its joint venture manufacturing facility with General Motors.
LG Energy Solution also reported improved production utilization at its plant in Poland.
On the supply chain side, the company diversified its lithium iron phosphate (LFP) cathode material suppliers to support non-PFE compliance requirements. It also secured long-term supplies of key raw materials in North America, including lithium concentrate and lithium carbonate.
North American ESS and Cylindrical Battery Expansion
LG Energy Solution plans to expand its North American ESS manufacturing capacity by converting additional EV pouch-type battery production lines to ESS manufacturing and adding new prismatic battery lines.
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The company is targeting more than 70 GWh of ESS production capacity in North America by the end of 2027.
Its cylindrical battery expansion includes plans to begin US production of 46-Series batteries by the end of 2026. Additional tabless 2170 battery production lines for hybrid vehicles are scheduled to start from 2027.
Through these investments, LG Energy Solution aims to establish more than 20 GWh of cylindrical battery capacity in North America by the end of 2027.
European and Next-Generation Battery Plans
In Europe, the company plans to establish local production lines for 46-Series cylindrical batteries by 2029.
LG Energy Solution is also advancing development of alternative battery chemistries and new applications. In South Korea, it aims to produce sodium-ion battery samples before the end of 2026 for proof-of-concept testing with a key ESS customer.
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Starting in 2027, the company also plans to expand into additional applications using high-power LFP 2170 cylindrical batteries.
The planned investments reflect LG Energy Solution’s efforts to expand its ESS business while maintaining supply capabilities for electric vehicles and hybrid vehicles across major regional markets.