While it has seen a 39% drop in profit from last year amid sluggish demand for electric vehicles, the South Korean battery heavyweight has reported a considerable increase in energy storage revenue, particularly in the grid-scale market segment.

“Expanded sales to major European automakers and increased production at our joint venture facilities in North America and Indonesia, as well as substantial ESS revenue growth from grid-scale projects, improved the overall revenue compared to the previous quarter,” said Chang Sil Lee, CFO of LG Energy Solution.

According to Lee, the company also saw quarter-on-quarter improvements in operating profit, excluding the IRA tax credit’s effect, “on the back of improved utilization rate led by shipment increase in both EV and ESS batteries, as well as reduced unit cost burden in line with metal price stabilization.”