LG Energy Solution (LGES), a leading South Korean battery supplier to Tesla, GM, and Hyundai, posted its first quarterly loss in three years.

The company reported an operating loss of 226 billion won (US$158 million) for Q4 2024, compared to a 338 billion won (around US$236 million) profit in the same period last year.

Revenue declined 19% year-on-year to 6.45 trillion won (around US$4 billion), primarily due to slowing electric vehicle (EV) demand and shifting environmental policies in major markets.

LGES plans to cut 2025 capital expenditure by 30% to address these challenges.

The potential removal of US federal EV tax credits, proposed by President Trump, could further dampen demand.

Shares of LGES rose slightly by 0.14%, reflecting cautious optimism.