LG Energy Solution, which makes EV battery for Tesla, General Motors and Hyundai Motor, has revealed its financial performance for 2024 and guidance for 2025.
LG Energy Solution will cut capital expenditure (Capex) by up to 30 percent this year due to a drop in electric vehicle demand and changing environmental policies in some major markets.
LG Energy Solution’s revenue for the fourth-quarter fell 19 percent from a year earlier to 6.45 trillion won.
LG Energy Solution has reported an operating loss of 226 billion won ($158 million) for the October-December period. LG Energy Solution posted a profit of 338 billion won for the same period a year earlier.
LG Energy CEO Kim Dong-myung, in a New Year message early this month, said he expected the EV market would recover after 2026, while also warning of challenges such as the global expansion of Chinese rivals.
U.S. President Donald Trump said this week that his administration would consider ending EV tax credits.
LG Energy said that scrapping the U.S. federal tax credits of $7,500 on EV purchases would put downward pressure on EV demand.
Donald Trump’s EV policies are expected to slow the pace of electrification in the U.S. in the short term, LG Energy Solution CFO Lee Chang-sil said during a conference call.