Corporate Logo(source: lgensol.com)
LG Energy Solution(373220) fell sharply on the morning of November 28 amid growing concerns that electric vehicle demand in North America may weaken.
As of 10:10 a.m., the stock was trading at 411,500 won, down 26,500 won (6.05%) from the previous session.
The decline appears to reflect brokerage assessments pointing to sluggish U.S. EV demand. Market concerns have intensified that sales may decline as tax benefits under the Inflation Reduction Act (IRA) begin to phase out.
Jung Jin-su, analyst at Heungkuk Securities, noted, “Despite positive effects from the stronger dollar and solid sales of small batteries and energy storage systems (ESS), slower U.S. EV sales are becoming a reality. As a result, the amount of Advanced Manufacturing Production Credit (AMPC) is expected to fall 8% quarter-on-quarter, likely leading to an operating loss.”
Jung Kyung-hee of LS Securities added, “With the IRA’s ‘30D tax credit’ expiring at the end of this year, sales of EV secondary batteries are expected to decline from the fourth quarter through 2026,” predicting that this would reduce revenue in 2025 and 2026.
However, she noted that ESS remains a strong growth segment. “Demand for ESS in U.S. data centers is expected to rise 67% year-on-year in 2026, driven by expanding AI services,” she said.
Still, she cautioned that when converted into actual battery demand in gigawatt-hours, the growth equates to only about 10GWh — still modest compared with the overall U.S. ESS market and LG Energy Solution’s total production capacity (CAPA).
*[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 102.621 trillion won (as of November 17, 2025, closing price).
Corporate Logo(source: lgensol.com)
LG Energy Solution(373220) fell sharply on the morning of November 28 amid growing concerns that electric vehicle demand in North America may weaken.
As of 10:10 a.m., the stock was trading at 411,500 won, down 26,500 won (6.05%) from the previous session.
The decline appears to reflect brokerage assessments pointing to sluggish U.S. EV demand. Market concerns have intensified that sales may decline as tax benefits under the Inflation Reduction Act (IRA) begin to phase out.
Jung Jin-su, analyst at Heungkuk Securities, noted, “Despite positive effects from the stronger dollar and solid sales of small batteries and energy storage systems (ESS), slower U.S. EV sales are becoming a reality. As a result, the amount of Advanced Manufacturing Production Credit (AMPC) is expected to fall 8% quarter-on-quarter, likely leading to an operating loss.”
Jung Kyung-hee of LS Securities added, “With the IRA’s ‘30D tax credit’ expiring at the end of this year, sales of EV secondary batteries are expected to decline from the fourth quarter through 2026,” predicting that this would reduce revenue in 2025 and 2026.
However, she noted that ESS remains a strong growth segment. “Demand for ESS in U.S. data centers is expected to rise 67% year-on-year in 2026, driven by expanding AI services,” she said.
Still, she cautioned that when converted into actual battery demand in gigawatt-hours, the growth equates to only about 10GWh — still modest compared with the overall U.S. ESS market and LG Energy Solution’s total production capacity (CAPA).
*[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 102.621 trillion won (as of November 17, 2025, closing price).