LG Energy Solution Q3 Revenue Rises 27.6% as ESS Shipments Grow

LG Energy Solution announced its third-quarter 2026 results on November 3, 2026, reporting consolidated revenue of KRW 9.6 trillion and operating profit of KRW 756 billion as energy storage system (ESS) shipments increased.

Revenue rose 27.6% quarter on quarter, while the operating profit margin reached 7.8%. The revenue figure included a North America production incentive of KRW 416.9 billion, reflecting volume growth led by increased ESS shipments in the region. The incentive directly connects part of the quarter’s revenue to the same regional storage expansion that drove volume growth.

The company attributed the broader revenue increase to higher ESS shipments, increased EV pouch-type battery shipments led by high-voltage mid-nickel products, and continued supply of 21-Series and 46-Series cylindrical EV batteries. Operating profit also improved with better plant utilization in Europe, cylindrical-battery volume growth, and a reduced fixed-cost burden as North American ESS capacity gradually stabilized.

Storage Contracts and Manufacturing Progress

In storage, LG Energy Solution secured what it described as its first direct-supply behind-the-meter battery energy storage system project for a big-tech customer. Behind-the-meter refers to power consumption at sites such as commercial facilities and industrial plants.

The company characterized the project’s local supply of non-prohibited-foreign-entity products as opening opportunities for additional AI data-center projects where supply-chain security is critical. LG Energy Solution also qualified as an NVIDIA DSX Ready BESS partner, supported by its high-capacity lithium iron phosphate (LFP)-based AC Link solution and in-house system integration capabilities.

In EVs, existing European contracts for high-voltage mid-nickel Gen2 products received increased volumes and extended supply periods. Manufacturing work included completing a new link production line in Arizona, phasing in additional pack production capacity in Ohio, improving utilization at the Poland plant, and resuming operations at the North American GM joint-venture plant.

Supply-chain actions accompanied that manufacturing work. The company diversified LFP cathode suppliers for non-PFE compliance and secured long-term North American supplies of key raw materials, including lithium concentrate and lithium carbonate.

Capacity Targets Extend Across Regions

LG Energy Solution targets more than 70 GWh of North American ESS battery capacity by the end of 2027 through additional conversion of EV pouch-type lines and new prismatic ESS lines. It also targets more than 20 GWh of North American cylindrical-battery capacity by then. U.S. production of 46-Series cylindrical batteries is planned to begin by the end of 2026, with tabless 2170 lines for hybrid electric vehicles starting in 2027.

In Europe, the company plans to secure local 46-Series cylindrical-battery production lines by 2029, enabling regional supply of both pouch-type and cylindrical batteries. At its Korean mother factory, it aims to produce sodium-ion battery samples during 2026 for proof-of-concept testing with a key ESS customer and expand into new applications with high-power LFP 2170 batteries starting in 2027.

Procurement plans include more direct metal purchasing and expanded supply of key materials to suppliers for greater operational flexibility. The company also plans four or more North American non-PFE LFP cathode suppliers, greater localization of European materials and components, and non-PFE supply chains for next-generation sodium-ion and lithium-manganese-rich batteries.

The quarter links LG Energy Solution’s earnings improvement to ESS shipments, production incentives and better utilization, while its new contracts depend on localized manufacturing and compliant sourcing. Whether the planned capacity additions and supplier changes can support those contracts while preserving the reduced fixed-cost burden is now the central operational question.