LG Energy Solution's average production rate at its domestic and international facilities rebounded in the first half of 2026.
According to the semi-annual report released on August 13, the company's production capacity reached 27.954 trillion won, with an average utilization rate of 52.8%. This marks a 5.2 percentage point increase from last year's annual average of 47.6%.
Over the past four years, LG Energy Solution's production rates have declined, recording 73.6% in 2022, 69.3% in 2023, 57.8% in 2024, and 47.6% in 2025. This year, attention is focused on whether the company can sustain a rebound in production rates due to the shift to manufacturing batteries for energy storage systems (ESS) and the recovery in electric vehicle demand.
North American production facilities that had been idle are also set to resume operations. LG Energy Solution's joint venture with GM, Ultium Cells, will restart its plant in Ohio next week, approximately seven months after halting production in response to a slowdown in electric vehicle demand.
In the first half of 2026, LG Energy Solution's research and development (R&D) expenses reached 725.9 billion won, the highest amount recorded for a half-year period. R&D accounted for 5.1% of total revenue. CEO Kim Dong-myung's compensation for the first half of the year was 811 million won.
Meanwhile, LG Energy Solution is significantly increasing its local production capacity to meet the growing demand for ESS in North America. In addition to its facilities in Holland and Lansing, Michigan, and Windsor, Canada, the company plans to utilize the second Ultium Cells plant in Tennessee and the Honda joint venture plant in Ohio to expand its North American ESS battery production capacity to over 50 GWh by the end of the year.
This strategy aims to reduce new investment burdens while increasing the utilization rates of existing plants by converting production capacity from electric vehicle batteries to ESS.
* This article has been translated by AI.
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