LG Energy Solution saw its revenue increase by 59%. Poland and energy storage helped drive this growth.
LG Energy Solution released preliminary results for the third quarter of 2026 on October 8. The battery manufacturer’s revenue increased by 59% year-on-year to $7.21 billion, while operating profit reached $565 million.
The full financial results will be available in November. However, it is already clear that LGES has found a way to cope with weaker demand for traction batteries in North America. Production for electric vehicles there has been reduced, but some of the losses are offset by the rapidly growing business in stationary energy storage.
Poland Plant Benefits from Volkswagen and Renault Sales
According to “The Korea Herald,” LG Energy Solution’s plant in Poland is seeing high demand due to rising European sales of Volkswagen and Renault electric vehicles. It is Europe that has helped the manufacturer improve its performance in the traction battery segment.
In the United States, the situation is different. Slower-than-expected sales of electric vehicles forced battery manufacturers to scale back their earlier plans, but at the same time, data centers running AI systems and modernized power grids require increasingly larger energy storage solutions. LGES already produces ESS batteries locally at several facilities in the U.S.
The increase in profits, however, is not solely due to higher sales. Reuters also points to American incentives for domestic battery production as well as compensation paid by automakers who failed to receive the minimum required amount of contracted batteries.
The Donald Trump administration rolled back some of the policies implemented during Joe Biden’s presidency, including the federal tax credit for purchasing electric vehicles. However, it retained Section 45X, which provides subsidies for manufacturing advanced components in the U.S. Support for domestic battery production is set to remain in place until 2032.
A $2 billion factory producing for Tesla and Toyota
The LGES also aims to develop a North American supply chain. On October 8, the company signed a multi-year agreement with Canadian firm Elevra Lithium. The contract covers the supply of 240,000 tons of lithium concentrate from mines in Quebec.
In August, the manufacturer opened a factory in Lansing, Michigan, which cost $2 billion to build. It produces LFP batteries, or lithium-iron-phosphate batteries, for Tesla’s energy storage systems. The same facility manufactures NMC cells made of nickel, manganese, and cobalt for Toyota’s electric vehicles.
LG Energy Solution is thus benefiting from the rising EV sales in Europe, American incentives, and orders for energy storage systems. Only an November report will show what portion of its results comes from normal operations and what comes from incentives and customer compensation.
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