LG Energy Solution expects Q2 operating profit to fall by 77% due to weak demand for electric vehicles

Golden Ten Data reported on July 7 that South Korean battery manufacturer LG Energy Solution (LGES) stated on Tuesday that its operating profit for April to June is expected to drop by 77% to 113 billion won (approximately $73.91 million), as continued weak demand for electric vehicles continues to weigh on battery sales. Market forecast for profit was 249 billion won. According to documents LGES submitted to regulators, revenue is expected to increase by 24.8% year-on-year to 7.6 trillion won. LGES said that the quarterly profit guidance includes tax credits for battery production in the United States under the U.S. Inflation Reduction Act. Excluding these tax credits, the company would have posted an operating loss of 128 billion won.