LG Energy posts largest-ever profit led by US JV with GM

South Korean battery maker LG Energy Solution Ltd. posted its largest-ever profit in 2022, driven by strong sales after its US joint venture with General Motors Co. started mass production late last year.

LG Energy’s operating profit soared 58% on-year to 1.2 trillion won ($1 billion), according to its regulatory filing on Monday.

Its sales jumped 43.4% to 25.6 trillion won, slightly above the target of 25 trillion won it had adjusted higher at a third-quarter conference call.

The world’s second-largest battery maker is also considering building one factory in Tennessee and one in Michigan with GM.

On a quarterly basis, however, its fourth-quarter operating profit declined 54.5% to 237.4 billion won from the previous quarter.

LG said the sharp quarter-on-quarter drop was due to one-off factors such as bonus payout, rising raw materials and logistics prices on the back of the weakening won, in addition to the replacement costs of energy storage facilities.

The company said it is also building battery plants jointly with Hyundai Motor Group, Honda Motor Co. and Stellantis N.V.

Write to Hyung-Kyu Kim at khk@hankyung.com
Yeonhee Kim edited this article