LG Energy Solution Forecasts $83.8M Q4 2025 Loss Amid Weak EV Demand

South Korean battery maker LG Energy Solution (LGES) recently issued earnings guidance, forecasting an operating loss of KRW 122 billion (approximately USD 83.8 million) for the fourth quarter of 2025—significantly worse than the market’s expectation of KRW 77 billion. The company attributed the shortfall primarily to slowing global electric vehicle (EV) demand and noted that it had already factored in tax credits provided under the U.S. Inflation Reduction Act (IRA). Without this policy support, LGES said its loss would have ballooned to KRW 455 billion. As a key supplier to automakers including Tesla and General Motors (GM), LGES has recently faced a series of partnership setbacks: Ford canceled a KRW 9.6 trillion battery order, and Germany’s Freudenberg terminated a KRW 3.9 trillion project. Additionally, GM will suspend cell production at its two U.S. joint-venture plants with LGES for approximately six months starting January 2025, potentially saddling LGES with over KRW 1 trillion in temporary costs. To shore up its operations, LGES is planning to sell part of its U.S. factory assets to Honda, though details of the transaction have not yet been disclosed. The company’s final earnings report is scheduled for release on January 29.