[Concall] LG Energy Solution "Increasing Direct Sourcing of Raw Materials and Considering Expansion Reduction if Necessary"

On the 25th, LG Energy Solution stated during its Q2 earnings conference call that "to strengthen product cost competitiveness, we plan to expand direct sourcing of raw materials from existing key minerals like lithium to the solid-state battery sector and invest in upstream product companies." They added, "We will solidify partnerships with competitive companies to fundamentally enhance material competitiveness."

LG Energy Solution also mentioned, "We will adjust the speed of new capacity expansion and consider reducing the scale of expansion if necessary," and "We will pursue other applications such as ESS and new production lines." They continued, "We aim to maximize capacity utilization at each secured production base," and "Through operational efficiency, we will reduce fixed cost burdens and optimize to improve profitability."

Furthermore, they said, "From a technology perspective, we will establish a pilot line for the dry electrode process at the Ochang plant this year and prepare to apply it to mass production lines by 2028," and "We will also gradually secure production volume of ESS LFP products, which started production in Nanjing, China, to actively respond to demand in North America and Europe."

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

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