Seoul: LG Energy Solution Ltd. announced on Friday that it remained in deficit during the fourth quarter, though its operating loss was significantly reduced compared to the previous year, due to decreased global demand for electric vehicle (EV) batteries. The company reported an operating loss of 122 billion won (US$83.8 million) for the October-December period, an improvement from the 225 billion won loss recorded in the same quarter of 2024, as per a preliminary report.

According to Yonhap News Agency, the company's sales declined by 4.8 percent, reaching 6.14 trillion won, while data on net income was not disclosed. The operating loss was 8.5 percent below the average estimate from a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency.

LG Energy Solution also revealed it received a tax credit of 332.8 billion won through the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act. Without the AMPC, the operating loss would have amounted to 454.8 billion won for the fourth quarter. The company plans to release its final earnings report at a later date.

For the entire year of 2025, the company reported an operating profit of 1.34 trillion won, marking a 133.9 percent increase from the previous year. However, annual revenue saw a 7.6 percent decrease, totaling 23.67 trillion won, with net earnings data yet to be provided.

In an earlier conference call for its third-quarter earnings in October, LG Energy Solution anticipated losses in the fourth quarter due to diminished EV battery shipments to North America. Analysts have noted that while the North American EV market is expected to continue its slump this year, LG Energy Solution is likely to focus on new energy storage system (ESS) projects to drive recovery.

"With the increasing demand for ESS products in North America, driven by a trend to decouple from China, the ESS sector is expected to gain momentum," stated Lee Jin-myung, a researcher at Shinhan Securities Co., in a report.