The logo of LG Energy Solution is pictured at its office building in Seoul, Nov. 23, 2021. Reuters-Yonhap

LG Energy Solution said Tuesday it swung into the black in the fourth quarter of 2021 from a year earlier on the back of strong electric vehicle (EV) battery sales.

Net income came to 71.8 billion won ($59.9 million) in the October-December period, compared with a 436.4 billion-won loss the previous year, Korea's top battery maker said in a regulatory filing.

Operating profit reached 75.7 billion won, a turnaround from a 479.1 billion-won loss. Sales rose 1.9 percent to 4.4 trillion won in the same period.

For all of 2021, it booked a profit of 929.8 billion won. Operating income reached 768.4 billion won last year, while sales came in at 17.8 trillion won.

The earnings results were released before the market opened.

The stellar performance came as sales of pouch and cylindrical EV batteries increased on strong demand from global carmakers accelerating their EV push. Rising demand for small pouch batteries, used in IT devices, also helped improve the bottom line.

The annual operating profit also reflected one-off costs incurred in battery recalls by U.S. General Motors, the company said.

"We fell short of achieving our annual sales target of 18.9 trillion won due to external factors, such as the global supply shortage of vehicle semiconductors and the price hike in raw materials," LGES said in a press release.

"But we have managed to post a 42 percent year-on-year sales growth thanks to our efforts to improve productivity amid growing EV demand," it said.

For 2022, it has set its sales target at 19.2 trillion won.

LGES plans to spend 6.3 trillion won on capital expenditure this year, up 58 percent from last year, to further boost its EV battery production capacity.

The world's second-largest battery player was spun off from parent firm LG Chem in December 2020, in a move to take a bigger share of the lucrative battery market.

Last month, it made a blockbuster market debut on the country's stock market, becoming the second-most valued company on the local bourse. (Yonhap)