- US EV battery booming as orders overwhelm LG Energy Solution.
- It has become more apparent that LGES’ focus would be North America.
On Friday, battery maker LG Energy Solution (LGES) said demand for electric vehicle (EV) batteries in North America would likely stay strong this year, boosting its revenue. The South Korean company, which supplies Tesla, General Motors Co and others, said it targets revenue growth of 25-30% this year, aiming to achieve up to 33.3 trillion won ($27 billion) in revenue.
LGES’ fourth-quarter profit tripled as it ramped up production to address a considerable order backlog from automakers rushing to take a bigger bite out of the growing EV market. The company offered a positive outlook in the North American market because of an increasing number of customers requesting made-in-USA batteries to be qualified for federal EV subsidies.
Cho Hyunryul, a senior analyst at Samsung Securities, said, “LGES’ presentation today suggests that this year would not be typically bad for the company thanks to strong demand in North America, even if we factor in an expected slow EV demand in Europe, where we would likely see gloomier macro situations than other major markets. It has become apparent that LGES’s focus would be North America.”