This file photo, provided by LG Energy Solution Ltd., shows its ESS products equipped with lithium iron phosphate batteries.

LG Energy Solution Ltd. (LGES), South Korea's leading battery maker, said Friday it shifted to a net loss in the fourth quarter from a year earlier due to a prolonged slowdown in electric vehicle (EV) sales.

In the three months ended Dec. 31, LGES swung to a net loss of 411 billion won (US$287.2 million) from a net profit of 190.3 billion won in the fourth quarter of 2023, the company said in a regulatory filing.

In recent years, car battery makers have suffered lackluster demand for all-electric cars amid the EV "chasm," occurring before the widespread adoption of EVs.

The company also posted an operating loss of 225.5 billion won in the fourth quarter, shifting from an operating profit of 338.2 billion won a year ago.

Sales fell 19.4 percent to 6.45 trillion won from 8 trillion won over the same period.

For the entire 2024, net income plunged 79.3 percent to 338.6 billion won from 1.63 trillion won the previous year.

Operating income plummeted 73.4 percent on-year to 575.4 billion won. Sales fell 24.1 percent to 25.6 trillion won.

This year, LGES said it aims to achieve a sales growth of 5 to 10 percent while cutting its capital expenditures by 20 to 30 percent.

To achieve the sales target, the company plans to change some of the battery production lines in its global plants for the production of energy storage systems (ESSs), whose demand is on the rise.

In North America, it currently operates three battery cell plants -- the first and second plants under a joint venture with General Motors Co. and the third in Holland, Michigan. Additional plants are being constructed in the U.S. states of Michigan, Georgia and Ohio, as well as Ontario, Canada, under joint ventures with GM, Hyundai Motor Group, Honda Motor Co. and Stellantis N.V., respectively.

The company also has plants in South Korea, Poland, China and Indonesia.