Tesla(US:TSLA) Zhong Guo Qi Che Bao Wang·2026-01-13 09:35Core Insights - LG Energy Solution (LGES) expects to report an operating loss of 1.22 trillion KRW (approximately 83.8 million USD) in Q4 2025, significantly exceeding market expectations of 770 billion KRW, highlighting the impact of a sluggish global electric vehicle market on core component suppliers [1] - The anticipated loss includes benefits from the U.S. Inflation Reduction Act (IRA); without this support, the quarterly operating loss would increase to 455 billion KRW, nearly doubling the expected loss [1] Group 1: Market Conditions - The slowdown in global electric vehicle demand is the primary reason for LGES's projected losses, as the company is a key battery supplier for major automakers like Tesla, General Motors, Kia, and Volkswagen [1] - Data indicates that from January to November 2025, LGES ranked third globally in battery shipments with 96.9 GWh, but Tesla's battery usage declined by 8.2% year-on-year due to reduced vehicle sales, directly affecting LGES's shipment volume and profit levels [1] - In Q4, LGES faced significant order cancellations, including a 9.6 trillion KRW battery procurement agreement with Ford and a terminated project worth 3.9 trillion KRW with Fraunhofer, totaling over 13 trillion KRW in canceled orders within a week, disrupting production capacity and profit expectations [1] Group 2: Operational Challenges - Joint venture operations have been further complicated, with General Motors announcing a six-month suspension of cell production at two joint venture factories in Tennessee and Ohio starting January 2026, likely leading to at least 1 trillion KRW in temporary costs for LGES [2] - To alleviate operational pressure, LGES plans to sell facilities and assets of its Ohio battery plant to joint venture partner Honda, although details of the transaction remain undisclosed, making it difficult to offset losses from the factory suspension in the short term [2] Group 3: Strategic Adjustments - In response to performance challenges, LGES is accelerating strategic adjustments, focusing on energy storage systems (ESS) as a core breakthrough for transformation [2] - The CEO has stated that the company will expedite the adjustment of electric vehicle battery production in North America, Europe, and China, prioritizing the enhancement of energy storage system capacity to capitalize on the global surge in storage demand [2] - LGES aims to integrate artificial intelligence across product development, material procurement, and manufacturing processes, targeting a minimum 30% increase in overall production efficiency by 2030 to improve profit structure through cost reduction and efficiency enhancement [2] Group 4: Sustainability Efforts - Despite short-term performance pressures, LGES maintains a leading position in sustainability, with its 2025 ESG report rated five stars and consistently ranking first in the social responsibility development index for the battery industry for five consecutive years [3] - The company has set a clear "negative carbon" strategy, aiming for all operational sites to achieve RE100/EV100 by 2030 and full value chain carbon neutrality by 2050; however, these long-term investments are unlikely to provide immediate profit support [3] - The losses faced by LGES are indicative of broader challenges within the global battery industry, as the slowdown in the electric vehicle market reveals risks of overcapacity, shifting competition from scale expansion to quality and cost [3]