SEOUL, Jan 24 (Reuters) - South Korean battery firm LG

Energy Solution (LGES) said on Friday it plans to

cut capital expenditure by up to 30% this year on slowing

electrical vehicle demand growth, after posting a quarterly loss

for the first time in three years.

The company, which makes batteries for Tesla,

General Motors ( GM ) and Volkswagen, reported an

operating loss of 226 billion won ($158 million) for the

October-December period.

The result compares with a profit of 338 billion won for the

same period a year earlier.

Newly inaugurated U.S. President Donald Trump said this week

his administration would consider ending tax credits of $7,500

on EV purchases. LGES said on Friday that scrapping the credits

would put downward pressure on the U.S. market.

"The changes in U.S. tariffs and subsides could slow the

pace of electrification in the short term, but we believe that

there would be no major change in the future direction of the

battery industry," LG Energy Solution CFO Lee Chang-sil said

during a conference call.

General Motors ( GM )

LGES said its fourth-quarter earnings were affected by

reduced demand from General Motors ( GM ), which produces batteries

with LG Energy in North America for GM cars. Demand from the

major customer is expected to recover starting in the second

quarter as it launches new models, LGES said.

The company also said it aims to grow its revenue by 5%-10%

this year, as joint battery factories with Stellantis ( STLA )

and Honda ( HMC ) start production in North America in the

second half of this year.

LGES said that as part of its expenditure cuts it will focus

on utilising existing or earlier planned production rather than

build new plants in North America.

LGES, which operates joint venture battery plants with GM in

Ohio and Tennessee, bought a stake from GM in another battery

plant in Lansing, Michigan, in December.

In a New Year message early this month, LG Energy Solution

CEO Kim Dong-myung said he expected the EV market would recover

after 2026, while also warning of challenges such as the global

expansion of Chinese rivals.

Revenue for the past quarter fell 19% from a year earlier to

6.45 trillion won.

Shares of LGES ended flat after the results, versus a 0.9%

rise in the benchmark KOSPI.

($1 = 1,430.2000 won)