LG Energy Solution, one of Tesla's battery suppliers, had a strong third quarter. The South Korean company reported operating profit of 756 billion won (about $560 million) for July to September.
The results
- Revenue: a record 9.64 trillion won, up 59% from a year earlier and up 27.6% from the second quarter.
- Operating profit: 756 billion won, up 25.7% from a year earlier. BusinessKorea notes it was up 567.3% from 113.3 billion won in the second quarter.
- US tax credits: 416.9 billion won came from Inflation Reduction Act manufacturing credits. Without them, operating profit was 339.1 billion won.
What drove it
CFO Lee Chang-sil said revenue grew on «a sharp increase in ESS shipments». Pouch and cylindrical EV batteries also grew in volume. He credited higher use of the company's Polish plant and productivity gains at new energy storage lines.
The Korea Herald says the company raised its full-year revenue outlook as North American storage orders pick up. BusinessKorea reports that LGES signed its first direct battery storage supply deal with a big tech company. It also says LGES was the only Korean battery maker chosen as a partner for Nvidia's «DSX Ready» storage program.