LG Energy Solution Ltd, a South Korean battery manufacturer, announced a profit recovery for 2021, with fourth-quarter profits flipping to profit due to strong electric-vehicle battery sales.
LG Energy reported a net profit of 71.81 billion Korean won ($60.0 million) in the fourth quarter, compared to a net loss of KRW436.49 billion in the same time last year.
Revenue increased by 1.9 percent to KRW4.439 trillion during the third quarter. For the quarter, the corporation earned KRW75.73 billion in operational profit. Revenue increased by 42% to KRW17.852 trillion in 2021, while net profit increased by 92% to KRW929.87 billion, compared to a net loss of KRW449.35 billion the previous year.
LG Energy ascribed the profit turnaround in 2021 to increased demand for EV batteries from global automakers. The business, which supplies EV batteries to Tesla Inc. and General Motors Co., stated that it intends to boost capital spending by 58% to KRW6.3 trillion in 2022.
Revenue is expected to climb 8% to KRW19.2 trillion in 2022, according to the business.
LG Energy has surpassed Samsung Electronics as South Korea’s second-largest listed business in terms of market capitalization after establishing the record for the country’s largest-ever IPO in January with an $11 billion offer.
