US Tax Credit Deadline Fuels 34% LG Energy Q3 Profit Gain on Shipment Surge

TradingKey - Korean battery manufacturer LG Energy Solution (LGES), which has been under scrutiny due to U.S. Immigration and Customs Enforcement (ICE) actions, disclosed preliminary Q3 2025 financial results on Monday, showing a 34% year-on-year increase in operating profit, significantly exceeding market expectations, thanks to U.S. tax credit policies.

For the three months ended September 30, LGES achieved an operating profit of 601.3 billion won (approximately $421.3 million), higher than analysts' previous average estimate of 509.7 billion won. Analysts noted that this growth was primarily driven by concentrated sales releases of electric vehicles before the expiration of U.S. federal tax credit policies.

Despite strong short-term performance, LGES remains cautious about the global market outlook. The company had warned in July that global electric vehicle demand might slow in early 2026 due to the expiration of tax incentives and potential increases in import tariffs on certain products.

As one of the main Korean companies affected by recent U.S. ICE immigration enforcement actions, LGES is facing significant operational challenges in its important U.S. market. In September, construction at the battery factory jointly built with Hyundai Motor in Georgia was forced to halt due to immigration enforcement actions, with hundreds of Korean workers arrested during the operation. Hyundai Motor CEO Jose Munoz stated that the incident could delay the factory's production by at least two to three months.

To alleviate the crisis, LGES announced earlier this month the gradual resumption of U.S. business travel for employees and subcontractors, following an agreement between the U.S. government and South Korean authorities allowing Korean personnel with valid temporary visas to continue participating in on-site equipment operations for U.S. projects.