LG Energy Solution — 2024 at a Glance
- Total revenue
- KRW 25.6 T (~US$19.3 B)
- YoY change
- -24.1 %
- Operating profit
- KRW 575 B (-73.4 %)
- Net loss (parent)
- KRW (1.02 T) (~US$770 M)
- Gross margin
- 13.3 % (down from 14.7 %)
- IRA AMPC credits
- KRW 1.48 T (+119 %)
- Capital expenditure
- KRW 12.4 T (+24.9 %)
- ESS revenue
- Not disclosed (single segment)
Key takeaways
- LG Energy Solution does not break out ESS revenue — automotive batteries, mobile batteries, ESS batteries, and others are reported as a single segment, making it impossible to assess the energy storage business in isolation.
- Revenue fell 24 % to KRW 25.6 trillion as global EV demand softened, while operating profit dropped 73 % to KRW 575 billion. The parent company recorded a net loss of KRW 1.02 trillion.
- IRA Advanced Manufacturing Production Credits provided KRW 1.48 trillion in other operating income, more than doubling year-on-year — without these credits, the company would have reported an operating loss.
- Capital expenditure rose 25 % to KRW 12.4 trillion, and non-current assets in America reached KRW 24.6 trillion, across joint ventures with GM, Stellantis, Honda, and Hyundai.
- LG Energy Solution is one of the few non-Chinese cell manufacturers at global scale, alongside Samsung SDI and SK On.
1. Headline numbers
LG Energy Solution reported total revenue of KRW 25,619,585 million (~KRW 25.6 trillion, approximately US$19.3 billion) for the year ended December 31, 2024, a 24.1 % decline from KRW 33,745,068 million in FY2023.
Gross profit fell to KRW 3,405,980 million, with gross margin declining from 14.7 % to 13.3 %. Operating profit dropped 73.4 % to KRW 575,387 million, compressed by a 24.7 % increase in SG&A costs to KRW 4,310,613 million — which includes development costs of KRW 210,408 million.
The company recorded consolidated net income of KRW 338,602 million, while the net result attributable to the parent company was a loss of KRW 1,018,741 million — a difference of KRW 1,357,343 million (derived), attributable to non-controlling interests.
| Metric | FY2024 | FY2023 | Change |
|---|---|---|---|
| Total revenue | KRW 25.6 T | KRW 33.7 T | -24.1 % |
| Gross profit | KRW 3.41 T | KRW 4.97 T | -31.1 % |
| Gross margin | 13.3 % | 14.7 % | -1.4 pp |
| Operating profit | KRW 575 B | KRW 2.16 T | -73.4 % |
| Net income (loss), parent | KRW (1.02 T) | KRW 1.24 T | Loss vs profit |
2. Revenue decline by region
European revenue fell KRW 4.97 trillion (-41.5 %), the largest regional decline in the filing. Revenue fell in every region reported.
The filing records customer compensation revenue of KRW 1,365,723 million — payments from OEM customers compensating LG Energy Solution for reduced order volumes relative to contractual commitments. This means over KRW 1.3 trillion of top-line revenue in FY2024 came not from selling batteries but from penalties paid by customers who ordered fewer batteries than agreed.
Three customers each accounted for more than 10 % of total revenue. The filing does not name these customers, but LG Energy Solution’s major automotive clients include General Motors, Hyundai, and several European automakers.
3. The ESS business — what we know
LG Energy Solution reports a single operating segment: “Automotive batteries, mobile batteries, ESS batteries and others.” Unlike CATL, which discloses ESS revenue and shipment volumes separately, or EVE Energy, which reports ESS as a distinct segment, LG provides no standalone energy storage financial data.
What the filing does reveal is the organizational footprint of the ESS business through its subsidiary structure:
- LG ES Australia — ESS sales in Australia
- LG ES Europe GmbH — ESS sales in Europe
- LG ES Vertech — ESS installation services
- LG ES Arizona ESS Inc. — ESS manufacturing in the United States
- LG ES Japan — ESS sales in Japan, newly established in 2024
The filing lists dedicated ESS subsidiaries across five geographies, including a Japanese entity newly established in FY2024 and a US manufacturing subsidiary. LG Energy Solution supplies battery cells and DC blocks for utility-scale energy storage. Without revenue disclosure, the size of the business cannot be quantified.
Warranty provisions reached KRW 1,693,916 million, up 32.9 % year-on-year. The filing notes these provisions include ESS replacement costs.
4. Geographic revenue and the US manufacturing bet
LG Energy Solution’s geographic revenue mix for FY2024:
| Region | FY2024 Revenue | Share | FY2023 Revenue | Share | Change |
|---|---|---|---|---|---|
| America | KRW 10,749 B | 42.0 % | KRW 11,855 B | 35.1 % | -9.3 % |
| Europe | KRW 7,029 B | 27.4 % | KRW 12,002 B | 35.6 % | -41.5 % |
| China | KRW 5,040 B | 19.7 % | KRW 6,082 B | 18.0 % | -17.1 % |
| Korea | KRW 1,747 B | 6.8 % | KRW 2,412 B | 7.1 % | -27.6 % |
| Asia/Oceania | KRW 1,055 B | 4.1 % | KRW 1,398 B | 4.1 % | -24.5 % |
America was the largest market at 42.0 % of revenue, up from 35.1 % in FY2023, while American revenue itself fell 9.3 %. European revenue fell 41.5 %, taking Europe from 35.6 % of revenue in FY2023 to 27.4 % in FY2024.
Non-current assets located in America reached KRW 24,579,109 million (~KRW 24.6 trillion), covering joint venture battery plants under construction and the company’s own facilities.
5. US joint ventures and AMPC credits
LG Energy Solution operates an extensive network of US joint ventures with major automakers:
- Ultium Cells — JV with General Motors (50 % ownership), manufacturing EV batteries in Ohio, Tennessee, and Michigan
- Nextstar Energy — JV with Stellantis (51 % ownership), manufacturing in Ontario and expanding in the US
- L-H Battery — JV with Honda (51 % ownership), for battery manufacturing
- HL-GA Battery — JV with Hyundai (50 % ownership), for US battery production
- HLI Green Power — originally a JV in Indonesia, reclassified to a subsidiary during FY2024
The IRA’s Advanced Manufacturing Production Credit (AMPC) generated KRW 1,480,020 million in other operating income during FY2024, a 119 % increase from the prior year, up from approximately KRW 677 billion in FY2023. The item is classified under “other operating income” and exceeded the reported operating profit of KRW 575,387 million by KRW 904,633 million (derived).
6. Capital structure and investment
Investment and balance sheet metrics for FY2024:
| Metric | FY2024 | FY2023 | Change |
|---|---|---|---|
| Total assets | KRW 60.3 T | KRW 45.4 T | +32.7 % |
| PP&E | KRW 38.3 T | KRW 23.7 T | +62.1 % |
| Capital expenditure | KRW 12.4 T | KRW 9.9 T | +24.9 % |
| Cash from operations | KRW 5.1 T | KRW 4.4 T | +15.0 % |
Property, plant, and equipment grew 62 % to KRW 38.3 trillion, driven by the US joint venture factory build-outs. Capital expenditure of KRW 12.4 trillion was 2.4x operating cash flow of KRW 5.1 trillion (derived).
Total assets grew 32.7 % to KRW 60.3 trillion in a year when revenue fell 24.1 %. Annual capital expenditure was KRW 12.4 trillion (~US$9.3 billion).
7. Market context
Along with Samsung SDI and SK On, LG Energy Solution is one of the three major Korean battery manufacturers, and one of the larger non-Chinese sources of battery cells at global scale.
Two policy frameworks apply to that position:
European policy. The EU Battery Regulation sets sustainability and due diligence requirements for batteries placed on the EU market.
US IRA requirements. The Inflation Reduction Act’s domestic content and foreign entity of concern (FEOC) provisions apply to batteries manufactured in the US. LG Energy Solution reports KRW 24.6 trillion of American non-current assets.
LG Energy Solution does not break out ESS financials, so its ESS results cannot be compared with those of CATL or BYD, which report ESS separately. Samsung SDI likewise does not break out ESS.
8. What to watch
ESS is not disclosed separately. The company reports a single operating segment combining automotive, mobile, and energy storage batteries. CATL reports ESS revenue and shipments, and EVE Energy reports a storage segment; LG Energy Solution reports neither. Dedicated ESS subsidiaries exist in five countries, but no ESS revenue, volume or margin figure is published.
US manufacturing investment. FY2024 capital expenditure was KRW 12.4 trillion, American non-current assets were KRW 24.6 trillion, and the filing lists five major joint ventures. AMPC income depends on the IRA provisions remaining in force; the filing gives no sensitivity analysis.
Customer compensation revenue. Compensation from OEMs for ordering fewer batteries than committed was KRW 1.37 trillion, or 5.3 % of FY2024 revenue (derived), rather than product sales.
Capital expenditure versus cash flow. Capital expenditure was 2.4x operating cash flow in a year with a parent-level net loss of KRW 1.02 trillion. Warranty provisions rose 32.9 % to KRW 1,693,916 million and include ESS replacement costs.
9. Related reading
- CATL 2025 Annual Results — 121 GWh ESS shipped, RMB 62.4B ESS revenue
- EVE Energy 2025 Annual Results — 71 GWh ESS shipped, 39.76% of revenue from ESS
- Samsung SDI 2025 Annual Results — KRW 13.27T revenue, Energy Solutions segment loss
- Sungrow FY2024 Annual Results — 28 GWh shipped, 36.69% ESS gross margin
- Gotion High-Tech 2025 Annual Results — RMB 41.5B revenue, ESS segment breakdown
- Browse all Battery Cell manufacturers · Browse all DC Block manufacturers
10. Sources
All data in this article is sourced from LG Energy Solution’s K-IFRS Consolidated Financial Statements for the year ended December 31, 2024. LG Energy Solution publishes statutory financial statements only — there is no management discussion and analysis (MD&A) or operational commentary accompanying the filing.
- LG Energy Solution 2024 Annual Report (PDF) — K-IFRS consolidated financial statements
- LG Energy Solution Manufacturer Profile — BESS Manufacturers directory page
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