LG Energy Solution is adjusting its focus towards grid-scale storage as EV demand slows, leading to a divergence in its businesses. Quarterly revenue was about KRW 6.1 trillion, down year-on-year, with an operating loss of roughly KRW 122 billion in Q4 2025. The company aims to expand ESS capacity and reduce capital spending.

Full-year revenue declined to KRW 23.7 trillion in 2025, with operating profit margins improving to 5.7%. LG Energy Solution sees ESS as its primary growth engine, securing 140 GWh of ESS order backlog in North America. It plans to expand global ESS capacity rapidly through 2026, focusing on North America.

LG Energy Solution is broadening its product mix by scaling up LFP and mid-nickel chemistries for cost-sensitive applications. With softer EV demand, the company is tightening capital allocation, reducing capital expenditures by over 40% in 2026. Asset sales and inventory reductions are part of the strategy to preserve cash.

The strategic pivot towards ESS reflects a trend in the battery sector, with manufacturers diversifying into stationary storage markets. LG Energy Solution forecasts mid-teen to 20% revenue growth in 2026, anchored in ESS expansion. The company aims to return to positive operating leverage as costs normalize amidst near-term volatility.

Read more at Yahoo Finance: LG Energy Solution Bets on ESS Growth as EV Slowdown Pressures Profits