By Joyce Lee and Hyunjoo Jin
SEOUL (Reuters) – South Korean battery company LG Energy Solution (LGES) said it expects growth in electric car demand to accelerate in the near term, as it posted on Friday its first quarterly loss in three years.
LG Energy Solution said it plans to cut capital spending by up to 30% this year, while also warning of slower growth due to changing environmental policies in some major markets.
The company, which makes batteries for Tesla (NASDAQ:), General Motors (NYSE:) and Hyundai Motor (OTC:), reported an operating loss of 226 billion won ($158 million) in the October-December period.
The result is compared to a profit of 338 billion won in the same period of the previous year.
In a New Year message earlier this month, LG Energy Solution CEO Kim Dong-myung said he expects the EV market to rebound after 2026, while also warning of challenges such as the global expansion of Chinese players.
US President Donald Trump also this week said his administration would consider ending EV tax credits.
LG Energy Solution said on Friday that the elimination of US tax credits of $7,500 on EV purchases will put downward pressure on EV demand.
Trump's EV policies are expected to reduce the rate of electricity in the US in the short term, LG Energy Solution CFO Lee Chang-sil said during the conference.
Last quarter's revenue was down 19% from a year earlier to 6.45 trillion won.
LGES shares were trading up 0.14% after the results, compared to a 0.6% rise in the benchmark.
($1 = 1,430.2000 won)