[Concall] LG Energy Solution "Capital Expenditure to Significantly Decrease Next Year"

LG Energy Solution Headquarters, Yeouido-daero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

LG Energy Solution announced that its capital expenditure (CAPEX) for next year will significantly decrease compared to this year.

On the 28th, during the earnings conference call, a representative from LG Energy Solution stated, "As uncertainty in the battery market increases, it is difficult to maintain past levels of facility investment," adding, "New expansion investments will be reduced, and investments will be focused only on some essential and unavoidable areas." They further added, "Next year's CAPEX scale will be much lower compared to this year."

They also mentioned, "There is a need to convert idle lines in existing battery production facilities into new product-type production lines, and this is being carried out swiftly," emphasizing, "Maximizing existing lines to increase factory utilization rates is a priority."

LG Energy Solution also stated, "The growth potential of the ESS (Energy Storage System) market is high, and we are actively pursuing orders," and added, "In response to changing market conditions, some electric vehicle battery production facilities are being converted into new product or ESS-dedicated lines."