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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] On Monday, LG Chem stated during its fourth-quarter earnings call that it would reassess the economic viability of all investments and enhance its financial soundness through optimal resource allocation.
While the company has not yet finalized its capital expenditure (CAPEX), it confirmed plans to invest in the late 2 trillion won range. A representative from LG Chem mentioned, "Considering the uncertainties in market conditions and demand, we plan to maintain a CAPEX level similar to 2024, around the late 2 trillion won range."
Additionally, LG Chem emphasized that it would prioritize optimizing the capacity utilization of existing lines by adjusting production schedules in line with the real volume plans of LG Energy Solutions and other external OEMs.
It plans to limit new investments as much as possible. In terms of sustainability, LG Chem will invest cautiously and selectively in areas where demand growth is assured, adjusting to slower market expansion.
For the second consecutive year, LG Chem has also decided to reduce its cathode material production capacity. Initially, the company planned to produce 170,000 tons of cathode materials in 2025 and 200,000 tons in 2026. However, this production target has been revised down to 150,000 tons for 2025 and 170,000 tons for 2026.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
