Core Viewpoint - LG Energy Solution's Q3 preliminary performance indicates a revenue of 5.7 trillion KRW, a 17% year-on-year decline, but an operating profit of 601 billion KRW (approximately 420 million USD), reflecting a 34% increase compared to the same period last year, primarily driven by the U.S. tax credit policy [3][4]. Group 1: Financial Performance - LG Energy Solution's Q3 revenue is reported at 5.7 trillion KRW, down 17% year-on-year [3]. - The operating profit is expected to reach 601 billion KRW, a significant increase of 34% from 448 billion KRW in the same quarter last year [3][4]. - Excluding the impact of U.S. tax credits, the operating profit would only be 235.8 billion KRW [4]. Group 2: Market Challenges - The cancellation of the tax credit policy is anticipated to slow down electric vehicle demand in the U.S., directly affecting battery demand [6]. - LG Energy Solution's North American production capacity is under threat due to a recent inspection by U.S. immigration authorities, which detained over 300 Korean employees [6]. - If visa issues are not resolved, other factories may face similar challenges, potentially impacting signed orders [7]. Group 3: Production and Orders - LG Energy Solution has established eight bases in North America with a planned total capacity exceeding 350 GWh [7]. - Since the second half of 2024, LG Energy Solution has secured nearly 400 GWh of cooperation in the energy storage market, with over 380 GWh in public intention cooperation orders for power batteries [7]. - The company is increasing its focus on the energy storage market to balance its dynamic storage business amid a slowdown in the new energy vehicle market [9]. Group 4: Future Orders - Key future orders include a 39 GWh contract with Renault for LFP batteries, a 50.5 GWh contract with Mercedes-Benz, and a 109 GWh contract with Ford [8]. - LG Energy Solution is also set to supply 67 GWh of batteries to Rivian and has ongoing collaborations with various traditional automakers and energy companies [8].