Mixed Q1 performances for European operations of battery firms

The European subsidiaries of South Korean battery makers have posted mixed results in the first quarter, with an increase in demand and large investments, according to their latest performance reports.

LG Chem Wroclaw Energy, a fully owned Poland-based subsidiary of LG Chem, posted a net loss of 301.7 billion won ($246 million) due to rapid expansion. However, Samsung SDI Hungary, a 100 percent subsidiary of Samsung SDI, remained profitable.

LG Chem Wroclaw Energy -- which manufactures and sells electric vehicle batteries in Europe -- recorded a revenue of 850.2 billion won in the first quarter, a 60 percent surge on-year. It, however, saw a net loss of 301.7 billion won, a 1,100 percent spike from 26.6 billion in the same period last year. It posted a net profit of 27.3 billion won in the fourth quarter last year.

Meanwhile, Samsung SDI Hungary posted revenue of 336.4 billion won, a 453 percent jump on-year and recorded a net profit of 11.7 billion won compared to its net loss of 13.2 billion won in the same period. It logged net profit of 8.7 billion won in the fourth quarter last year.

“The net loss originated from LG Chem’s vast expansion plan for its EV battery plants in Poland,” a company official said.

The company is currently planning to double its production capacity this year in Europe to 60 gigawatts hours, which is enough to power 1 million EVs.

By Kim Byung-wook (kbw@heraldcorp.com)