LG Energy Solution cuts capex by 30% due to slowing EV demand and first quarterly loss

From Investing.com: 2025-01-24 01:56:04

South Korean battery firm LG Energy Solution (LGES) predicts a slowdown in electric vehicle demand growth, leading to its first quarterly loss in three years. The company plans to cut capital expenditure by up to 30% due to changing environmental policies in major markets. Operating loss for October-December was 226 billion won, a significant drop from the previous year’s profit of 338 billion won.

LG Energy Solution CEO Kim Dong-myung expects the EV market to recover post-2026, despite challenges like competition from Chinese rivals and potential U.S. policy changes. President Trump hinted at ending EV tax credits, which could dampen demand. Scrapping the $7,500 federal tax credits would negatively impact EV sales, slowing electrification in the U.S. in the short term.

Revenue for the last quarter fell by 19% year-on-year to 6.45 trillion won. LGES shares rose by 0.14% post-results, compared to a 0.6% increase in the benchmark. U.S. policies and market dynamics are likely to shape the future of the EV industry, with potential implications for manufacturers like LG Energy Solution.



Read more at Investing.com: LG Energy Solution cuts capex on slowing EV demand after Q4 loss By Reuters