GM's Ultium Cells partner reports record $6.5B quarterly revenue

The Ultium Cells battery plant in Lordstown is proving to be a profitable venture for General Motors’ Korean partner.
LG Energy Solution has announced its fifth consecutive report of revenue growth, with a quarterly record of $6.5 billion, representing a 2.5 percent increase quarter-on-quarter and a 101 percent increase year-on-year.
“We actively responded to strong EV demands in North America. Our EV battery shipment has increased due to the stable operation of the GM JV (Ultium Cells) plant in Ohio, and the average selling price has also improved,” explained Chang Sil Lee, CFO of LG Energy Solution. “Thanks to our timely and strategic business decisions, we’ve marked the fifth consecutive quarter of top-line growth since the initial public offering .”
Since building its first U.S. EV battery plant in 2012, LGES says it has preemptively established manufacturing capacity and supply chain in North America, meeting the needs of its customers seeking the EV tax credit eligibility under the Inflation Reduction Act passed by Congress last year.
The company’s batteries, manufactured and sold this year, fulfill the IRA requirement that half of the battery components and 40% of the critical minerals are sourced in the U.S. The company says as a result, EVs equipped with its batteries are expected to be eligible for the full $7,500 EV tax credits this year.
LGES also says it is planning to expedite localizing manufacturing and assembly of battery components, including electrodes, cells, and modules, and cooperate with existing partners to localize separator and electrolyte production.
The company says it plans to respond to the anticipated growth of electric vehicle and energy storage systems markets in North America by strengthening its capabilities to respond to the rising demands for cylindrical batteries in the U.S.
LGES says it will also enhance customer accessibility and negotiate power on the back of its U.S. production base by boosting competitiveness in the local battery market by securing new growth engines, such as lithium iron phosphate batteries for energy storage systems.
The company says it will also continue efforts to improve productivity by pulling in yield stabilization in new plants and applying smart factory technology.
“With a vision that batteries will change the world, we pioneered the industry for 30 years and built America’s first EV battery plant,” said Youngsoo Kwon, CEO of LG Energy Solution. “Now with the U.S and the world embracing EVs as the key way to the future, we have a lot of momentum to bring about real-life, large-scale transitions toward electrification. At the same time, we will maximize our core strengths of product competitiveness and operational expertise, providing the world-best quality products at all times.”
The company says it has the largest number of battery manufacturing facilities being constructed or operating in the U.S.
The company says it expects to become eligible for the Advanced Manufacturing Production Credit, a tax credit granted directly to battery manufacturers.