LG Energy Solution has successfully returned to operating profit in the second quarter of this year. Despite ongoing challenges from declining electric vehicle demand and a sluggish battery market, the impact of tax credits under the U.S. Inflation Reduction Act (IRA) contributed to the company's recovery from a loss just one quarter prior.
On July 7, LG Energy Solution announced its preliminary consolidated results for the second quarter of 2026, reporting sales of 7.56 trillion won and an operating profit of 113.3 billion won. This marks a 24.8% increase in sales compared to the same period last year and a 15.3% increase from the previous quarter.
The operating profit represents a turnaround from a loss of 207.8 billion won in the previous quarter. However, it is a 77.0% decrease compared to the operating profit of 492.1 billion won from the same quarter last year.
The turnaround is attributed to the effects of the Advanced Manufacturing Production Credit (AMPC) under the IRA, with LG Energy Solution reporting a tax credit amount of 241 billion won for the second quarter. Excluding this credit, sales would have been 7.32 trillion won, resulting in an operating loss of 127.7 billion won.
Additionally, LG Energy Solution announced last month that it has surpassed approximately 59,000 registered global patents and over 100,000 applications. This achievement marks the first time a global battery company has exceeded 100,000 patent applications worldwide.
* This article has been translated by AI.
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