South Korean battery manufacturer LG Energy Solution (LGES) reported Tuesday a decline in its third-quarter operating profit this year, representing a 39% year-on-year drop.

The estimated operating profit is 448.3 billion won (approximately US$332 million), down from 731.2 billion won in the same quarter.

In a statement, LGES said the company is pursuing strategies to address this downturn by diversifying its operations.

This includes expanding into energy storage systems, while also focusing on the development of next-generation battery technologies, including all-solid-state and dry-electrode batteries.

LGES announced plans to adjust its battery production lines within its global manufacturing operations to meet the rising demand for ESS.

The company’s existing footprint includes three battery cell plants in North America through joint ventures with General Motors, along with additional facilities in South Korea, Poland, and China.

An upcoming plant in Indonesia is expected to commence production in the latter half of 2024.