LG Energy Solution Ltd., South Korea's top battery manufacturer, reported a significant 58 percent drop in its second-quarter operating profit compared to the previous year, attributing the decline to sluggish sales of electric vehicles. The company estimated its operating profit for the quarter ending in June to have fallen to 195.3 billion won ($142 million) from 460.6 billion won in the same period last year, with sales projected to decline by 30 percent to 6.16 trillion won from 8.77 trillion won. LGES cited reduced prices of lithium and other metals impacting EV battery prices, alongside decreased demand from automakers, as the primary reasons for the profit downturn. Despite the temporary slowdown in EV demand, the company aims to enhance its competitiveness as a car battery supplier by focusing on strengthening its capabilities and exploring new markets, such as energy storage systems (ESS). Additionally, LGES recently secured a significant supply agreement with Renault S.A. to provide lithium iron phosphate (LFP) pouch-type batteries for the French carmaker's EV models for the next five years, marking its entry into a battery market traditionally dominated by non-Korean manufacturers. The company also disclosed plans to adjust some of its battery production lines in global plants to accommodate the rising demand for ESS products. LGES currently operates battery cell plants in North America, South Korea, Poland, and China, with a new production facility set to commence operations in Indonesia in the second half of 2024. The company is also in the process of constructing additional plants in the U.S. and Canada through joint ventures with major automotive companies, demonstrating its commitment to expanding its global manufacturing footprint.