LG Energy Solution Posts KRW 7.6 Trillion Revenue, Turns Profitable in Q2 2026 on Strong ESS Sales
LG Energy Solution reported Q2 2026 consolidated revenue of KRW 7.6 trillion and operating profit of KRW 113.3 billion, reversing an operating loss from the previous quarter.
- KRW 7.6 trillion
- KRW 113.3 billion
- 10.5%
- 4.6x
What Happened
LG Energy Solution announced consolidated revenue of KRW 7.6 trillion for the second quarter of 2026, a 15.3% increase quarter-over-quarter. The revenue includes KRW 241 billion in North America production incentives. Operating profit reached KRW 113.3 billion with a margin of 1.5%, driven by increased shipments of pouch-type EV batteries to Europe, stable cylindrical cell demand from a strategic customer, and higher ESS volume from North American capacity expansion.
KRW 113.3 billion
The company turned profitable after an operating loss in Q1 2026, supported by improved sales mix of cylindrical EV cells and higher utilization rates.
4.6xyear-over-year
ESS now accounts for the high-20% range of total revenue, driven by five North American production sites and surging demand.
- In ESS, rising power demand and AI infrastructure investment are driving growth across FTM and BTM sectors. LG plans to leverage its position as North America's largest ESS manufacturer and expand pro
- In EV, demand for 46-Series cylindrical batteries is increasing due to tighter thermal safety regulations and structural battery integration. The company will supply locally produced 46-Series cells a
- ESS: Optimize North American operations for profitability and secure new renewables-linked and data center infrastructure projects.
- EV: Prepare for production at the Arizona facility and stable operation of EV pouch lines in North America and Europe, aiming for new orders of 46-Series batteries and enhanced mid-nickel products.
- Future-preparedness: Deliver high-power tabless 2170 batteries, accelerate sodium-ion ESS battery development, and set up a pilot line for all-solid-state batteries using dry electrode processes.
Previously from LG Energy Solution
In the first quarter of 2026, LG Energy Solution reported an operating loss of KRW 207.8 billion, driven by ramp-up costs and product mix shift. The company's Q2 results mark a turnaround, with operating profit of KRW 113.3 billion, supported by strong ESS shipments and improved EV cell sales.
Background drawn from MotorClaw's earlier coverage of LG Energy Solution's official releases.
Why this matters
The company's return to profitability shows how increased ESS shipments and improved utilization rates can offset EV battery market challenges. LG Energy Solution's growing ESS business, which accounted for the high-20% of revenue, highlights the rising demand for energy storage driven by AI data centers and grid stability. This affects investors, EV battery customers, and the broader energy storage industry.
Terms in This Story
- ESS
- Energy Storage Systems, which store electricity for later use, often from renewable sources or for grid stabilization.
- FTM
- Front-of-the-Meter, referring to energy storage connected to the utility side of the electric meter, used for power generation, transmission, and distribution.
- BTM
- Behind-the-Meter, referring to energy storage located on the customer's side of the electric meter, used for commercial or industrial facilities.
Summarised from the linked release; details can be imperfect — always verify against the original source.