Core Viewpoint - LG Energy Solution reported significant growth in operating profit for Q2 2023, driven by U.S. battery production subsidies and preemptive inventory accumulation by clients before potential tariffs [1][2] Group 1: Financial Performance - Operating profit for Q2 2023 increased by 152.4% year-on-year and 31.4% quarter-on-quarter, reaching 492.2 billion KRW, compared to 195 billion KRW in the same period last year [1] - Consolidated revenue decreased by 9.7% year-on-year and 11.2% quarter-on-quarter, totaling 5.565 trillion KRW [1] - Net profit reached 91 billion KRW, a turnaround from a net loss of 24 billion KRW in the previous year [1] Group 2: Production and Capacity Expansion - LG Energy Solution paused the construction of its ESS battery factory in Arizona, prioritizing existing capacity in Michigan and accelerating the production plan for lithium iron phosphate batteries for ESS by one year [1] - The company plans to expand its annual production capacity for ESS batteries to 17 GWh by the end of this year [1] Group 3: Strategic Partnerships and Market Outlook - LG Energy Solution signed a supply agreement with Chery for 8 GWh of cylindrical batteries for European electric vehicles, marking the first such contract between a Korean battery manufacturer and a Chinese automaker [2] - The company anticipates a slowdown in global electric vehicle demand in the short term but expects long-term growth driven by advancements in autonomous driving technology [2] - LG Energy Solution is optimistic about the growth opportunities in the global ESS market, particularly due to the rising demand from renewable energy projects and AI data centers [2] - Policy adjustments are expected to increase barriers for "restricted foreign entities" entering the U.S. market, enhancing the competitive advantage of companies with established local production and supply chains [2]