South Korea’s LG Energy Solution (LGES) said on Monday its third-quarter operating profit likely rose 34% from a year earlier, driven by a rush in U.S. electric vehicle (EV) sales ahead of expiring government incentives at the end of September.
The world’s second-largest EV battery maker, which supplies Tesla and General Motors, estimated an operating profit of 601 billion won ($420 million) for the July–September period, up from 448 billion won a year earlier. The preliminary figure exceeded the 528 billion won profit forecast from LSEG SmartEstimate, which places greater weight on historically accurate analysts.
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Analysts said the company’s results were lifted by a late-quarter surge in U.S. EV purchases as consumers sought to benefit from the $7,500 federal tax credit that expired on Sept. 30. “Strong U.S. sales momentum likely provided a temporary boost before the incentive deadline,” said one Seoul-based analyst.
Excluding U.S. manufacturing incentives received under the Inflation Reduction Act, LGES said it would have posted an operating profit of 236 billion won. The company will announce detailed earnings on Oct. 30.
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LGES shares gained 1.5% on Monday, outperforming the broader South Korean benchmark (.KS11), which fell 1.4%.
The battery maker, which has warned of a potential slowdown in EV demand early next year following the expiration of U.S. tax credits and the imposition of import tariffs by the Trump administration, is ramping up production of batteries for energy storage systems (ESS) to offset weaker vehicle demand.
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In a bid to diversify its portfolio, LGES signed a $4.3 billion deal to supply Tesla with ESS batteries, helping the U.S. automaker reduce reliance on Chinese imports affected by tariffs.
However, the company has also faced setbacks in its U.S. operations. Construction at its joint battery plant with Hyundai Motor in Georgia was suspended in early September after an immigration raid led to the arrest of hundreds of South Korean workers. Hyundai Motor CEO Jose Munoz said the incident would delay the plant’s startup by at least two to three months.
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LGES said earlier this month it would gradually resume U.S. business travel for its employees and subcontractors after the Trump administration agreed to allow South Korean workers to continue equipment installation under existing temporary visas.
The company’s efforts to stabilize operations and diversify beyond EV batteries come as the global battery industry faces shifting demand patterns, tighter trade policies, and increasing competition in the energy storage market.
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