LG Energy Solution reported a Q1 2026 operating loss due to weak EV demand and rising costs.

South Korean battery manufacturer LG Energy Solution reported an operating loss of 208 billion won ($138 million) for the first quarter of 2026, reversing a profit from the previous year. The company cited weak demand for electric vehicles and rising costs from Middle East disruptions and North American expansion. Excluding U.S. tax credits, the loss would have been larger. LGES is pivoting toward energy storage systems for AI data centers to offset the decline in EV battery revenue.