LG Energy Solution (LGES) of South Korea reported a 40% increase in quarterly profit on Wednesday, boosted by higher output from its joint venture facility in the United States with General Motors (NYSE:GM).

The company, which supplies Tesla (NASDAQ:TSLA), GM, and other manufacturers, posted a 731 billion won ($543.46 million) operating profit for the July-September period, up from 522 billion won the previous year.

This was in line with the company's projection of 731 billion won published earlier this month and higher than the 659 billion won average predicted by LSEG SmartEstimate, which is weighted toward forecasts from more consistently accurate experts.

In early trade, the company's shares were down 3.7%, compared to a 0.2% drop in the benchmark KOSPI.

According to a regulatory filing, LGES's revenue increased 7.5% to 8.2 trillion won in the third quarter.

According to analysts, LGES has profited this year from U.S. tax subsidies for electric vehicles under the Inflation Reduction Act, as well as production ramp-up at its battery facility joint venture with GM.

However, GM announced on Tuesday that it was delaying the debut of many EV models to save money and cutting back on EV product spending to prioritize profitability above sales targets.