The battery business is booming and brings decent profits.
After a strong financial report from Tesla, now also LG Chem shows how great the company progressed, reaching new all-time high sales and operating profits, mostly thanks to the EV battery business.
LG Chem managed to increase its Q3 revenues to 7,507 billion KRW ($6.61 billion), which is 8.8% more than a year ago and a new record:
- operating profits: 902 billion KRW ($794 million), up 159% year-over-year
- net income: 570 billion KRW ($502 million), up 316% year-over-year
The revenues in the "Energy Solutions" segment were a record high. LG Chem also maintained a gross margin above 5%.
- Revenues: 3,144 billion KRW ($2.77 billion), up 42% year-over-year
"Energy Solutions" stands for 42% of total revenues
- operating profits: 169 billion KRW ($149 million) or 5.4% of sales
Launch of new EV models by major European clients, as well as an increase in sales of cylindrical batteries, plus an expanded supply of IT products, contributed to this result.
The Q4 is expected to be even better in terms of sales and profitability thanks to "automobile batteries and cylindrical batteries for electric automobiles".
"Energy Solutions" soon will be bigger than all the other areas combined: