LG Energy Solution is stepping up its entry into the robot battery market as it expands into new businesses. The company is in talks with six robot makers with global leading technology on battery supply and development of next-generation models.

LG Energy Solution disclosed the details on Jan. 29 in a fourth-quarter 2025 conference call. The company is pushing into the robot market after its cylindrical battery technology gained recognition. With the six companies, it is discussing not only product supply but also specifications and the timing of mass production for next-generation models.

The company posted fourth-quarter revenue of 6.14 trillion won and an operating loss of 122.0 billion won. Revenue rose 7.7 percent from the previous quarter, but operating profit turned to a loss. From a year earlier, revenue fell 4.8 percent and the operating loss improved 45.9 percent. North American production subsidies of 332.8 billion won were reflected in the fourth quarter. The actual operating loss excluding the subsidies was 454.8 billion won.

Shipments of the cylindrical 46 series in the fourth quarter were a major achievement. Chang-sil Lee (이창실), LG Energy Solution chief financial officer and vice president, said the cylindrical 46 series, which was recognized for its differentiated value, began shipping in the fourth quarter of last year. As of end-2025, it secured an order backlog of more than 300 GWh.

The ESS business built an accumulated order backlog of more than 140 GWh by upgrading its differentiated system integration capabilities. The company adjusted its North American ESS production base to its Michigan Holland plant to bring forward the start of mass production. It said it raised production line utilization by converting idle EV lines at its Poland plant and a North American joint venture into ESS production.

In Europe, it began producing mid-priced products such as high-voltage mid-nickel and LFP. Lee said it started shipments to customers from the fourth quarter of last year. It is also pushing to sell a Honda JV building. The company said if the final contract is completed in the first quarter, it plans to use the sale proceeds to fully repay the JV's borrowings to pursue asset strengthening and improve its financial structure.

For full-year 2025, it posted revenue of 23.67 trillion won and operating profit of 1.35 trillion won. Revenue fell 7.6 percent from a year earlier, but operating profit rose 133.9 percent.

Lee explained that companywide revenue fell 7.6 percent from a year earlier as the demand environment weakened overall due to various policy changes affecting the pace of EV electrification. On the reason for the sharp rise in operating profit, she said it was due to a sales strategy focused on high-margin products and the full-scale ramp-up of North American ESS production.

The company forecast that the ESS market would enter a phase of structural growth in 2026. It cited broader electrification across industries, rising heating and cooling demand due to climate change, and an expansion of AI-related data centres. It expects global ESS installations to rise more than 40 percent from a year earlier.

The North American ESS market is expected to show growth outpacing the global average. The backdrop is an expansion of data centre investment by big tech companies and policy support. The company said North American ESS demand is expected to expand its share to as much as half of the overall North American battery market.

46-series order backlog at 300 GWh... Arizona plant to start operations at year-end

This year’s new order target was set at a level above the 90 GWh recorded in 2025. It will also expand global ESS battery production capacity to more than 60 GWh by the end of the year, nearly doubling it. A large part of the capacity will be concentrated in North America. It plans to secure capacity by using its standalone plants in Michigan Holland and Lansing, as well as some JV plants.

It is accelerating in new businesses in particular. LG Energy Solution said on Jan. 29 that in the robot market, where expectations have recently risen, it is discussing with six companies with global leading technology not only product supply but also specifications and the timing of mass production for next-generation models, after its cylindrical battery technology gained recognition.

In its EV business, it will strengthen product responsiveness. It will begin mass production of LFP and high-voltage mid-nickel to broaden its base in the mid-priced market. For LMR prismatic batteries, it will start sample production in Ochang in the first half and prepare for mass production in 2028.

For the 46 series, it will introduce within the year a product with enhanced fast-charging features. It plans to start operating a new Arizona plant from the end of the year to respond to order volumes in North America. In the HEV market, it will supply additional small-sized products to improve market responsiveness.

Beyond the robot market, it will expand battery applications into ships, urban air mobility and aerospace. It said next-generation materials and processes such as dry processing, all-solid-state batteries and sodium batteries will also proceed without disruption.

It set a goal of revenue growth this year of the mid-teens to around 20 percent from the previous year. It plans to achieve companywide revenue growth through high growth in small batteries, including the 46 series, and the ESS business, despite a decline in EV pouch-type revenue.

It will expand the scale of operating profit from a year earlier through operating efficiency and cost reductions. It will cut investment in production facilities by more than 40 percent from the previous year. It plans to strengthen financial soundness by focusing on using existing assets such as line conversions and managing cash flow.

CEO Dong-myung Kim (김동명) said the global battery market has entered a period of value shift in which value is being reshaped beyond EVs into various industries such as ESS. He said this year the company will turn its efforts, including portfolio rebalancing and operating efficiency, into tangible results, and through intense focus turn opportunities into performance.