SEOUL, April 30 (Reuters) - South Korean battery maker

LG Energy Solution (LGES) on Wednesday posted a 138%

rise in first-quarter profit, as favourable foreign exchange

rates helped cushion the impact of slowing electric vehicle

sales growth in major overseas markets.

LGES, whose customers include Tesla, General Motors ( GM )

and Hyundai Motor ( HYMTF ), reported operating profit

of 375 billion won ($261.96 million) for January-March, in line

with its earlier guidance.

The result compared with 157 billion won a year earlier.

The battery maker in a regulatory filing said it would have

booked an 83 billion won operating loss without a tax credit

received under the U.S. Inflation Reduction Act.

Revenue rose 2.2% from a year earlier to 6.3 trillion won.

LGES' share price was down 2.1% after the results

announcement versus a 0.1% rise in the benchmark KOSPI.

The South Korean won's average exchange rate was 1,452.9 per

U.S. dollar in the first quarter, 8.5% weaker than the

year-earlier average of 1,329.4. That means LGES could buy more

won with dollars earned from U.S. sales.

Also boosting earnings were solid EV sales reported by

customer GM, analysts said. The U.S. automaker reported 94%

on-year domestic growth at 31,887 EV in the first quarter.

GM on Tuesday retracted its annual forecast, reflecting

uncertainty surrounding the impact of a trade war instigated by

the administration of U.S. President Donald Trump. The automaker

also pushed back its investor call due to changes to the United

States' import tariff policy.

The same day, Trump signed a pair of executive orders to

soften the blow of new tariffs on the auto industry, offering a

mix of tax credits and relief from other levies on materials.

($1 = 1,431.5000 won)