Corporate Logo(source: lgensol.com)
Shinhan Investment & Securities said on September 8 that LG Energy Solution(373220) continues to demonstrate strong competitiveness in securing orders despite challenging external conditions, reiterating its “Buy” rating and target price of 430,000 won.
According to analyst Jin-Myung Lee at Shinhan Investment & Securities, “LG Energy Solution’s order backlog stood at around 50 gigawatt hours (GWh) as of the second quarter, but with additional contracts in July, the backlog is estimated to have surpassed 90 GWh. Revenue from energy storage systems (ESS) is expected to grow significantly from 2.3 trillion won this year to 5.2 trillion won next year, with profitability also set to improve sharply due to the Advanced Manufacturing Production Credit (AMPC).”
Sales of cylindrical batteries are also projected to expand. Shinhan Investment & Securities noted that visibility for growth in this segment has increased following a recently announced contract with Mercedes-Benz. In particular, based on the current order backlog, most of the supply capacity of the Arizona cylindrical battery plant—scheduled to begin operations next year with an annual production capacity of 36 GWh—has already been secured.
Lee added, “While expectations for the electric vehicle battery business must inevitably be adjusted downward due to the growing market share of Chinese batteries in Europe and the expiration of U.S. tax credits, profit growth driven by the expansion of ESS battery production capacity is expected to remain intact.”
He further emphasized, “With the recent contract from Mercedes-Benz, growth visibility for cylindrical 46-series products (46mm diameter) has become even clearer. Given the current orders, most of the production capacity of the Arizona plant set to start next year has already been secured.”
*[KOSPI]LG Energy Solution(373220) was established through a spin-off from LG Chem, and it develops, manufactures, and sells battery products used in electric vehicles(EVs), energy storage systems(ESS), and more. Market capitalization is 80.377 trillion won(as of September 5, 2025, closing price).
Corporate Logo(source: lgensol.com)
Shinhan Investment & Securities said on September 8 that LG Energy Solution(373220) continues to demonstrate strong competitiveness in securing orders despite challenging external conditions, reiterating its “Buy” rating and target price of 430,000 won.
According to analyst Jin-Myung Lee at Shinhan Investment & Securities, “LG Energy Solution’s order backlog stood at around 50 gigawatt hours (GWh) as of the second quarter, but with additional contracts in July, the backlog is estimated to have surpassed 90 GWh. Revenue from energy storage systems (ESS) is expected to grow significantly from 2.3 trillion won this year to 5.2 trillion won next year, with profitability also set to improve sharply due to the Advanced Manufacturing Production Credit (AMPC).”
Sales of cylindrical batteries are also projected to expand. Shinhan Investment & Securities noted that visibility for growth in this segment has increased following a recently announced contract with Mercedes-Benz. In particular, based on the current order backlog, most of the supply capacity of the Arizona cylindrical battery plant—scheduled to begin operations next year with an annual production capacity of 36 GWh—has already been secured.
Lee added, “While expectations for the electric vehicle battery business must inevitably be adjusted downward due to the growing market share of Chinese batteries in Europe and the expiration of U.S. tax credits, profit growth driven by the expansion of ESS battery production capacity is expected to remain intact.”
He further emphasized, “With the recent contract from Mercedes-Benz, growth visibility for cylindrical 46-series products (46mm diameter) has become even clearer. Given the current orders, most of the production capacity of the Arizona plant set to start next year has already been secured.”
*[KOSPI]LG Energy Solution(373220) was established through a spin-off from LG Chem, and it develops, manufactures, and sells battery products used in electric vehicles(EVs), energy storage systems(ESS), and more. Market capitalization is 80.377 trillion won(as of September 5, 2025, closing price).