South Korea’s top battery manufacturers reported narrower operating losses in the fourth quarter of 2025, driven by strong demand for battery energy storage systems (BESS) in North America, which helped offset soft electric vehicle sales.
LG Energy Solution recorded an operating loss of KRW 122 billion ($85.5 million) for the October–December period, an improvement from a KRW 226 billion loss in the same quarter of 2024. Quarterly revenue rose 7.7 percent sequentially to KRW 6.1 trillion, supported by robust BESS sales. The company noted that without tax credits under the US Inflation Reduction Act, its loss would have widened to KRW 455 billion.
For the full year 2025, LG Energy Solution reported KRW 23.7 trillion in revenue, down 7.6 percent year on year, while operating profit more than doubled to KRW 1.3 trillion. The improvement reflected growth in BESS, cost-efficiency gains, and production incentives in North America.
LG Energy Solution said it optimized asset management by shifting capacity between EV and energy storage production, reducing new investment, and improving utilization of existing lines. The company established early production sites in Europe for high-voltage mid-nickel and lithium iron phosphate (LFP) batteries, and boosted capital efficiency through the sale of non-core assets. In 2025, it began local LFP battery production in North America and expanded its system integration capabilities, leading to a 140 GWh ESS order backlog.
Looking ahead, LG Energy Solution expects global ESS installations to grow more than 40 percent in 2026, with North America accounting for about half of demand. The company aims to secure over 90 GWh of new ESS orders, primarily through long-term contracts with utilities and developers, and plans to raise global ESS production capacity above 60 GWh—over 80 percent of which will be in North America.
Samsung SDI also improved its results, reporting Q4 sales of KRW 3.86 trillion and an operating loss of KRW 299.2 billion—about half the prior quarter’s loss. The battery division delivered record quarterly ESS sales, generating KRW 3.622 trillion in revenue, up 28.4 percent sequentially and 1.6 percent year on year, with an operating loss of KRW 338.5 billion.
For 2025 overall, Samsung SDI posted KRW 13.27 trillion in revenue, down 19.8 percent, and an operating loss of KRW 1.72 trillion amid continued EV demand challenges. As the only non-Chinese prismatic battery supplier in the US, the company expanded its ESS portfolio with ternary cathode (NCA) and LFP products, and grew local BESS production capacity.
Samsung SDI anticipates further ESS demand growth in 2026, driven by grid-scale storage, data center projects, and US policy support. The company plans to operate its ESS facilities at full capacity and begin mass production of LFP batteries in the US.
Source: ESS News
