Seoul: LG Energy Solution Ltd (LGES) said on Wednesday it shifted to the black in the third quarter from a year earlier on the back of robust demand in electric vehicle (EV) batteries and a weaker Korean won currency.
The battery maker said it will continue its focus on North America, a fast-growing EV market, and step up to build stable supply chains for raw materials to meet the requirements in the new US policy on EV and green energy.
Net profit came to 187.7 billion won ($131.3 million), swinging from a loss of 205.8 billion won a year earlier, the company said in a regulatory filing.
Operating income reached 521.9 billion for the July-September period, compared with a loss of 372.8 billion won a year ago. Sales rose 89.9 percent to 7.64 trillion won, the largest quarterly number, reports Yonhap news agency.
“EV battery output for customers in North America and Europe increased, and the supply of ESS (energy storage system) products for power grids in North America began in earnest,” LGES CFO Lee Chang-sil said.
“The reflection of raw materials price hikes in the selling prices improved productivity, and the favorable foreign exchange rate from a strong dollar also contributed to improving the bottom line,” he added.
LGES also revised up its revenue forecast for this year to 25 trillion won, from the last estimate of 22 trillion won, given the burgeoning EV demand, especially from the United States.
The world’s second-largest battery manufacturer counts Tesla, General Motors and Ford Motors as its clients, among others.
The battery maker announced a plan to build its second cylindrical battery plant in the US state, but later said it was rethinking the project amid rising costs.