LG Energy Solution (LGES) reported a provisional sales decline of 29.9% year-over-year, amounting to 6.3 trillion won (US$4.46 billion). Additionally, it posted an operating profit of 157.3 billion won (US$114 million), a 75.2% decrease compared to the previous year. LG Energy Solution’s AMPC totaled 188.9 billion won (US$137 million).
Excluding AMPC, the South Korean battery supplier reported operating losses of 31.6 billion won in the first quarter. SNE Research noted a slight 0.2% drop in LG Energy Solutions’ global battery market share to 13.7% between January and February. At its recent earnings call, Tesla recognized the challenges facing electric vehicle (EV) adoption but expressed optimism about the future of EVs.
During the Q1 2024 earnings call, Elon Musk remarked, “As we all have seen, the EV adoption rate globally is under pressure, and a lot of other car manufacturers are pulling back on EVs and pursuing plug-in hybrids instead. We believe this is not the right strategy, and electric vehicles will ultimately dominate the market.”
According to LGES forecasts, the penetration rate of EVs may decrease from the current level of 50% to the mid-30% by 2030. The company also aims to expand its energy storage system business.