LG Energy Solution reports Q2 operating profit on ESS growth and IRA credits

Battery maker returned to quarterly operating profit as North American ESS shipments improved, but it would have remained loss-making without KRW 241 billion in U.S. AMPC benefits.

Summary

LG Energy Solution reported second-quarter 2026 revenue of KRW 7.56 trillion and operating profit of KRW 113.3 billion, returning to operating profit after three consecutive quarters of losses as North American energy storage system shipments rose, EV battery mix improved and fixed-cost pressure eased. The results, announced in full on July 30 after preliminary figures on July 7, included KRW 241 billion in Advanced Manufacturing Production Credit benefits under the U.S. Inflation Reduction Act; excluding that support, the company said revenue would have been KRW 7.32 trillion and it would have posted an operating loss of KRW 127.7 billion. LG Chem, which reported its own second-quarter results on July 31, said LG Energy Solution’s rebound helped group earnings beat market expectations while cautioning that broader market conditions remain challenging.

Terms & Concepts
  • AMPC: Advanced Manufacturing Production Credit, a U.S. manufacturing tax credit under the Inflation Reduction Act for eligible clean-energy production
  • ESS: Energy storage systems, batteries used to store and supply power for grid, commercial, backup and data-center applications
  • 46-Series: A large cylindrical electric-vehicle battery format that LG Energy Solution says is seeing rising demand