Battery maker LG New Energy today announced its latest financial results. According to the report, the company increased production to address a large backlog of orders for electric vehicles, which ultimately led to a direct tripling of profits in the fourth quarter.
LG New Energy reported full-year 2022 consolidated revenue of KRW 25.6 trillion and operating profit of KRW 1.2 trillion, up a record 43.4 percent and 57.9 percent, respectively, from the previous year. Consolidated revenue for the fourth quarter was KRW 8.54 trillion and operating profit was KRW 237.4 billion, up 92 percent year-over-year, due to increased sales of electric vehicle batteries from key customers, increased production at the Ultium Cells plant in Ohio, and increased production of energy storage systems (ESS).
LG New Energy expects the fastest growing EV market in North America due to the operation of two Ultium Cells plants in Ohio and Tennessee, which will have a capacity of 55GWh.
The South Korean company, which is currently supplying other car companies such as Tesla and General Motors, reported an operating profit of 237 billion won (about 1.304 billion CNY) for the October-December period, compared with 76 billion won a year earlier. That compares with an average forecast of 256 billion won by Refinitiv SmartEstimate analysts.
LG New Energy said it expects nearly half of its global battery capacity to be earmarked for the North American market. Talks are underway with Tesla and other electric vehicle startups to supply batteries from its proposed Arizona battery plant.
In addition, the company missed analysts’ expectations due to one-time costs such as reserves and year-end bonuses related to energy storage systems. LG Energy said in a regulatory filing that revenue rose 92 percent to 8.5 trillion won in the quarter.