[Concall] LG Energy Solution "Maximizing Existing Plant Capacity... Adjusting Ramp-Up Speed"

On the 25th, LG Energy Solution stated during its Q2 earnings conference call that "capacity expansion and CAPEX (capital expenditure) expansion are very sensitive issues," adding, "As mentioned earlier, we are considering the possibility that the EV market chasm may have a longer-than-expected impact on the overall battery market, and we are reviewing various directions with this in mind."

LG Energy Solution said, "First, the overall stance is to optimize the operation of the global capacity currently held by converting idle lines in existing processes to new applications," and added, "We will maximize the capacity of existing factories."

It continued, "We will respond flexibly to changes in new demand markets but will prioritize and respond quickly," and said, "We will adjust what needs to be adjusted and also control the speed of ramp-up." Furthermore, it added, "Through this, we will respond meticulously to prevent excessive investment."

LG Energy Solution also stated, "ESS demand is still increasing." The company said, "We have held off on expanding ESS in Arizona because, although the overall demand potential has improved, we can strategically make sufficient use of existing production sites," and added, "We plan to proceed without disruption at the time customers need."

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

This content was produced with the assistance of AI translation services.