Shin Hak-cheol: "Investing in New Growth Engines Despite Recession... No Plans to Sell LG Energy Solution Shares"

LG Chem 23rd Annual General Meeting of Shareholders on the 25th

Shin Hak-cheol, Vice Chairman of LG Chem, announced on the 25th that despite the downturn in the traditional petrochemical business, the company will continue investing in its three major new growth engines (eco-friendly, battery materials, innovative new drugs). He also drew a line, stating that there are no plans to sell shares of LG Energy Solution.

After the 23rd regular shareholders' meeting held at LG Twin Towers in Yeongdeungpo-gu, Seoul, Vice Chairman Shin told reporters, "Although the current petrochemical market conditions are not favorable, we are continuously investing in the three major new growth engines," adding, "There is almost no adjustment in investment, and some investments are even increasing."

Vice Chairman Shin said, "More than 70% of total investments are steadily increasing, focusing on the three major new growth engines," and "The largest investment is in battery materials."

In July 2021, Vice Chairman Shin held an online press conference and announced plans to invest 10 trillion won by 2025, centered on the three major new growth engines.

Regarding questions about the development and mass production of all-solid-state battery materials, Vice Chairman Shin responded, "There is nothing progressed enough to announce a schedule yet," and added, "We are conducting extensive research not only on all-solid-state but also on battery materials and manufacturing methods beyond lithium-ion."

Shin Hak-cheol, Vice Chairman of LG Chem. The photo shows Vice Chairman Shin speaking at a press conference during the groundbreaking ceremony of LG Chem's cathode material plant held on December 19 last year (local time) in Clarksville, Tennessee, USA. Photo by Yonhap News Agency

Regarding the plan to build a cathode material plant in Europe, he said, "We are examining locations from various angles," and added, "Since battery demand has somewhat slowed down, we are looking at it more cautiously, but ultimately, I believe a cathode material plant will be established in Europe."

Vice Chairman Shin dismissed the ongoing market speculation about selling shares of LG Energy Solution, stating, "There are currently no plans to sell, and we are exploring various options."

Regarding recent rumors about the sale of petrochemical facilities, Vice Chairman Shin said, "It is true that upstream competitiveness has become difficult due to excessive capacity expansion in China," and added, "We are reviewing various strategic options to secure raw material competitiveness."

He continued, "There will be various forms such as joint ventures (JV)," and said, "This is not a sale; we are working on how to secure raw material competitiveness and maintain partnerships."

At the LG Chem shareholders' meeting that day, the original agenda items, including approval of the financial statements, appointment of CFO Cha Dong-seok as an inside director, and appointment of Lee Young-han as an outside director, were approved.