LG Energy Profit Misses Estimates Amid Slow EV Demand
LG Energy Solution missed Q2 earnings estimates as weak EV demand in key markets outweighed growth in energy storage systems, pressuring battery sector outlook.
LG Energy Solution Ltd. reported preliminary second-quarter earnings that missed analyst estimates, as lackluster support for electric vehicles in key markets like the US failed to offset surging demand for energy storage systems.
The South Korean battery maker posted operating profit of 1.2 trillion won ($870 million) for the April-June period, below the average analyst estimate of 1.5 trillion won. Revenue rose 8% year-on-year to 8.7 trillion won, driven by strong sales of energy storage systems (ESS) for grid and commercial applications. However, the EV battery segment underperformed due to slower-than-expected adoption in the US and Europe, where high interest rates and consumer caution have weighed on sales.
For energy commodities traders, the results highlight a key divergence in battery demand: while ESS growth is robust, the EV slowdown raises questions about future lithium and nickel demand. Battery metals prices have already softened in recent months, and a prolonged EV demand slump could further pressure prices. Traders tracking NowPrice's real-time fuel and battery metal quotes can monitor how these trends affect broader energy markets.
Looking ahead, LG Energy's guidance suggests ESS will remain a bright spot, with global energy storage installations expected to grow over 30% in 2026. However, the EV outlook remains uncertain, with automakers adjusting production plans and policy support varying by region. Investors will watch upcoming earnings from peers like Panasonic and CATL for further clues on sector momentum.