New Energy revealed in regulatory filings on January 26 that it signed an agreement with Japan's Isuzu Motors on electric vehicle batteries, which will be valid until the end of 2026. LG Energy Solution did not disclose the amount of the agreement.
And it said in a statement on Friday that in the fourth quarter of 2023, its pure profit fell by 31% due to the decline in downstream demand for electric power. Net profit fell from 275.6 billion won in 2022 to 190.3 billion won at the end of 2023 (about 1.).$4.2 billion).
However, fourth-quarter operating profit rose 43% year-on-year to 338.2 billion won from 237.4 billion won, driven by U.S. tax credits and strong U.S. sales.
LG said that despite the slowdown in EV sales in Europe and China since the end of last year, the increase in U.S. automotive battery production and sales, as well as local tax credits, increased operating income.
The company said the tax credit worth 250 billion won was reflected in its quarterly operating profit.
Sales in December increased from 854 trillion won, down 63%, to 8 trillion won.
For the full year of 2023, net income more than doubled to 164 trillion won.
Operating profit increased from 121 trillion won, up to 216 trillion won, an increase of 78%. Sales from 2559 trillion won increased to 3375 trillion won, up 32%.
This is the first time that the company's annual operating income and sales have exceeded 2 trillion won and 30 trillion won since its establishment in 2020.
*: International Energy Network.