LGES receives requests from automakers in light of IRA
Expects Chinese rivals to face challenges entering U.S.
Shares rise after Q1 profit meets forecasts

SEOUL, April 26 Reuters South Korea39;s LG Energy Solution said on Wednesday quarterly profit more than doubled, as the battery maker benefited from subsidies from the U.S. Inflation Reduction Act and solid U.S. sales of electric vehicles.

Its shares jumped as its earnings met forecasts.

The company, which supplies Tesla Inc, General Motors Co and others, said it had received requests from major automaker clients about boosting battery supply since the U.S. law took effect, which could lead to additional orders.

LG Energy Solution LGES reported an operating profit of 633 billion won 472.6 million for the JanuaryMarch period, up 145 from 259 billion won a year earlier.

That was in line with an average analyst forecast of 633 billion won compiled by Refinitiv SmartEstimate.

Analysts attributed the jump in profit to solid sales of EVs in the United States, where EV consumers can receive a tax credit of up to 7,500 under the Inflation Reduction Act.

When asked about rival Chinese battery makers39; efforts to enter the U.S. market, LGES Chief Financial Officer Lee Changsil said the company would maintain its competitive position in the U.S.

He cited the Inflation Reduction Act, aimed at weaning the United States off dependence on China for EV battery components, as a reason for that advantage.

In a further boost…