LG Energy Solution's Q1 profits


LG Energy Solution, a unit of South Korean conglomerate LG Group, announced that its first-quarter profits more than doubled, thanks to strong gains in the U.S. market.

The company, which produces lithium-ion batteries for electric vehicles and energy storage systems, reported a net profit of 1.5 trillion won ($1.3 billion) for the first quarter of 2021, up from 700 billion won ($624 million) in the same period last year.

The results were driven by robust sales of batteries to major automakers, including General Motors and Tesla, as well as increased demand for home energy storage systems amid rising energy prices and concerns over power outages.

According to LG Energy Solution, its sales in the U.S. market increased by more than 200% in the first quarter, while its sales in Europe and Asia also saw strong growth.

The company has been expanding its production capacity in response to the growing demand for electric vehicles and energy storage systems. It recently announced plans to invest $4.5 billion in its U.S. battery business over the next four years, including the construction of a new factory in Tennessee.

In a statement, LG Energy Solution CEO Jong Hyun Kim said: "We are pleased to report strong results for the first quarter, driven by our leadership position in the global battery market and our strategic partnerships with major automakers. We remain committed to expanding our production capacity and investing in new technologies to meet the growing demand for clean energy solutions."

LG Energy Solution's parent company, LG Group, is also planning to spin off its electric vehicle components business into a separate company later this year. The move is part of a broader restructuring effort aimed at boosting the group's competitiveness in the rapidly-evolving electric vehicle market.