LG Energy Solution said on Monday that its operating profit from July to September hit 448.3 billion won ($322.84 million), up 129.5 percent quarter-on-quarter, although it still marked a 38.7 percent fall compared with the same quarter last year.
The South Korean battery maker’s consolidated revenue stood at 6.8778 trillion won in the third quarter this year, a 11.6 percent increase quarter-on-quarter and a 16.4 percent decrease year-on-year.
CFO Chang Sil Lee said expanded sales to major European automakers and increased production in North America and Indonesia, as well as substantial ESS revenue growth from grid-scale projects improved the overall revenue.
The company said it secured large-scale orders from top global automakers for its new form factors and chemistries totaling 160GWh, further advancing its goal of leading global innovation in EV batteries.
The major supply agreements include a contract for 50GWh of cylindrical batteries with a major automaker to power EVs sold in North America.
With the deal, LG Energy Solution has expanded its customer portfolio for cylindrical EV batteries from primarily EV startups to established automakers.
But Lee said the company has a “conservative outlook” on revenue growth in 2025. “We expect capital expenditure to be significantly reduced next year compared to this year, with the exception of some essential and necessary investment.”
LG Energy Solution said it will continue to advance its materials and process technologies. For battery materials, it will apply industry-leading material technologies such as single crystal cathode and silicon contents in anode.
Also, it will focus on developing dry electrode technology to achieve higher energy density and cost innovation, with the goal of applying it to mass production in 2028.
In addition, responding to rising importance of EV safety, LG Energy Solution is developing multiple solutions to reinforce its product safety, including advanced thermal propagation prevention technology for pouch-type batteries.