[Concall] LG Chem "Responding to IRA on battery minerals, in consultation with clients... Meeting requirements smoothly"

[Asia Economy Reporter Jeong Dong-hoon] LG Chem stated in a conference call following its Q3 earnings announcement on the 31st that regarding battery mineral supply and demand, "We are continuously consulting with customers on responses to the Inflation Reduction Act (IRA)," and "We are in ongoing discussions with companies in North America and Australia, and if all consultations are completed, the IRA requirements by timing will be met without difficulty."

It added, "To enable North American electric vehicle buyers to receive subsidies, we are producing cathode materials locally and are discussing supply chains with North American and Australian companies to procure metals from regions with which the U.S. has free trade agreements (FTA). We believe there will be no significant issues in gradually meeting the IRA requirements."

However, it explained, "Since the detailed provisions of the IRA have not been finalized, it is difficult to provide a definitive answer on these plans."

Furthermore, LG Chem commented on Q4 cathode material profitability, stating, "Due to recent stabilization of metal prices, most of the inventory effects will disappear in Q4, and profitability is expected to decline slightly compared to the previous quarter due to inventory adjustments by companies. Since the metal cost accounts for a large portion of cathode material costs, we are establishing cooperative systems with related companies and expect to expand them in the future."

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