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Profit at Battery Maker LG Energy Plunges Amid Slower EV Growth
- LG would have posted an operating loss excluding US tax credit
- Battery shipments to automakers are sluggish on lower demand
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LG Energy Solution Ltd.’s profit slumped as slower growth for electric vehicles hurt shipments and profitability at the battery maker.
The supplier to General Motors Co., Volkswagen AG and Tesla Inc., among other automakers, reported 157.3 billion won ($116 million) in operating profit for first three months of the year, the South Korean company said Friday, missing analysts’ estimates. If it wasn’t for a tax credit doled out by US President Joe Biden’s Inflation Reduction Act (IRA), LG would have made a 31.6 billion won operating loss.