LG Energy Solution says its Q1 2026 revenue rose slightly due to steady cylindrical EV battery demand and ESS growth
The company remained loss-making due to ESS expansion costs and a weaker product mix
Its order backlog and North American production capacity continued to expand
LG Energy Solution, the battery producer from South Korea’s LG Group, released its Q1 2026 financial results, reporting a modest rise in revenue, supported by steady demand for 46-Series cylindrical EV batteries and strong orders for energy storage systems (ESS) batteries.
The company posted consolidated revenue of KRW 6.6 trillion, up 1.2% quarter-on-quarter (QoQ), including KRW 189.8 billion in North American production incentives.
The ESS segment revenue accounted for a mid-20% share of total revenue. Despite higher shipments of cylindrical EV and ESS batteries and ongoing cost-cutting efforts, profitability was impacted by initial ramp-up costs at new ESS facilities and a weaker product mix linked to lower pouch-type EV battery sales in North America.
It recorded an operating loss of KRW 207.8 billion due to initial ramp-up costs associated with the expansion of its ESS production sites.
The company also secured over 100 GWh of new orders for its 46-series cylindrical batteries, expanding its backlog to more than 440 GWh by April 2026. It continued to strengthen its North American manufacturing footprint and expects to exceed 50 GWh of ESS production capacity in the region by the end of the year.
LG Energy has secured a new contract to supply ESS batteries for a grid-scale project in North America, with deliveries of its next-generation product starting in 2028. According to management, the new batteries are expected to reduce total costs by 15% compared to its current LFP ESS products, supporting demand for locally produced energy storage solutions in the US.
Moreover, LG Energy operates 3 standalone plants in Holland, Lansing, and Windsor – in North America, along with 2 joint venture (JV) facilities in Tennessee and Ohio. It expects this network to enable more than 50 GWh of ESS battery production capacity in the region by the end of the year.
Going forward, LG Energy sees the importance of ESS growing due to rising electricity demand and energy risks for grid stability, while improving EV economics and technology are supporting higher EV demand. In the US and Europe, policies favor locally produced batteries, pushing customers toward companies with regional manufacturing capabilities.
These factors will drive its future growth strategy, and in response, the company plans to focus on improving cash flow, meeting ESS and EV demand, strengthening supply chains, and advancing product technology. This includes developing next-generation battery technologies such as dry electrode, solid-state, and sodium-ion batteries.