Battery giant LG Energy Solution posted record quarterly earnings Thursday thanks to its burgeoning energy storage business in the U.S. and growing electric vehicle sales in Europe, the company said in a regulatory filing in South Korea.

It’s been a disruptive couple of years for battery makers in North America, as they’ve had to roll back their EV ambitions due to slower-than-expected sales. Many have offset those losses by tapping into a growing market for stationary energy storage batteries, which are in high demand due to power hungry AI data centers and grid upgrades.

Now the bet on stationary storage has started paying off for LGES, while strong plug-in vehicle sales in Europe have buoyed the company’s EV-battery business. Per preliminary results, the company’s third quarter revenue grew 59% year-over-year to $7.21 billion, and its operating profit grew 25% to $565 million. It will disclose the full official results in November.

According to The Korea Herald, the battery company’s plant in Poland is seeing strong demand from Volkswagen and Renault’s growing EV sales in Europe. Here in the U.S., growth in AI data centers has spurred demand for its energy storage system (ESS) batteries, which it now produces locally at multiple U.S. plants.

The surge in earnings can also be attributed to battery-manufacturing credits the company received through the U.S. Inflation Reduction Act and compensation from automakers for failing to meet minimum EV battery purchase requirements, according to Reuters.

While the Trump administration’s One Big Beautiful Bill Act wiped out many pro-climate policies enacted under the Biden administration, including axing the federal tax credit and rolling back fuel economy rules, it largely preserved the Section 45X Advanced Manufacturing Production tax credits for domestic battery manufacturing.

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