Seoul, Jan 9 (IANS) LG Energy Solution on Friday said it continued to remain in the red in its fourth quarter (Q4), although its operating loss nearly halved from a year earlier amid weak global demand for electric vehicle (EV) batteries.

Operating loss in the October-December period was estimated at 122 billion won ($83.8 million), compared with a loss of 225 billion won posted in the fourth quarter of 2024, the company said in a preliminary report.

Sales decreased 4.8 per cent to 6.14 trillion won. The data for net income was not available, reports Yonhap news agency.

The operating loss was 8.5 per cent lower than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

LG Energy Solution said it has received a tax credit of 332.8 billion won through the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act.

Excluding the AMPC, the company recorded an operating loss of 454.8 billion won in the fourth quarter, the company said.

The company will release its final earnings report later.

For all of 2025, operating profit came to 1.34 trillion won, up 133.9 per cent from a year earlier.

Annual revenue decreased 7.6 percent to 23.67 trillion won. The data for net earnings was not available.

During its conference call for third-quarter earnings in October, LG Energy Solution said the company was expected to suffer losses in the fourth quarter due to reduced shipments of EV batteries to North America.

Analysts said that while the North American EV market is set to remain in a slump this year, the company is anticipated to seek a turnaround by focusing on securing new energy storage system (ESS) projects.

“On the back of rising demand for ESS products in North America amid the trend to decouple from China, the ESS sector is expected to gain momentum,” Lee Jin-myung, a researcher at Shinhan Securities Co., said in a report.

–IANS

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