LG Energy's Q2: EV slump cuts profit 77%; ESS — with a 4.8GWh Arizona deal — becomes the engine

LG Energy Solution's Q2 operating profit fell 77% year over year to ₩113.3B ($74M) — an operating loss of ₩127.7B excluding US AMPC tax credits — as weak North American EV demand idled the Ultium (GM JV) plants in Ohio and Tennessee from January. The offset: revenue rose quarter over quarter on new EV model launches and growing grid-scale ESS shipments, anchored by a 4.8GWh ESS supply agreement in Arizona.

Why it matters

This is the quarter the pivot showed up in the P&L: the EV business that justified the capacity is idling plants, while grid storage — the business the Honda JV plant was converted to serve — is what grew. The AMPC detail matters most: profitability currently rests on US tax credits, so policy exposure is now a core part of the equity story alongside the ESS order book.

What to watch

Ultium plant restarts, the pace of ESS backlog additions after Arizona, and any change to US credit policy.