ENA Sectors 2024-04-25 12:43:12 <p><span style="font-size:14px"><strong>New Delhi, Apr 25 (KNN)</strong> LG Energy Solution (LGES), a major electric vehicle battery maker, has announced plans to reduce capital expenditure this year in response to a slowdown in global demand for electric vehicles.</span></p> <p><span style="font-size:14px">The decision comes after LGES reported a 75 per cent decline in operating profit for the first quarter of 2023, totalling just 157 billion won (USD 114 million). Revenue for the quarter reached 6.1 trillion won.</span></p> <p><span style="font-size:14px"> We plan to adjust our investment priorities in consideration of mid-to-long-term demand and essential expansion in the United States, said LGES Chief Financial Officer Lee Chang-sil during an earnings call, reported TOI.</span></p> <p><span style="font-size:14px">Previously, LGES had stated that its 2023 capital expenditure would match the 10.9 trillion won invested in 2022. However, the company now intends to minimise spending amid concerns over EV demand.</span></p> <p><span style="font-size:14px">While LGES expects performance to improve in the second half driven by new electric vehicle models from U.S. customers like GM, it acknowledges potential risks.</span></p> <p><span style="font-size:14px">These include the upcoming U.S. presidential election and government policies related to the environment.</span></p> <p><span style="font-size:14px">LGES is also eyeing opportunities for its 46-series cylindrical battery products in more affordable electric vehicles planned by Tesla.</span></p> <p><span style="font-size:14px">Shares of LGES fell 2 per cent in trading following the earnings announcement, compared to a 1 per cent drop in the benchmark KOSPI index.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 37547 https://knnindia.co.in/news/newsdetails/sectors/lg-energy-solution-scales-back-capex-amid-ev-demand-slowdown 2024-04-25 12:43:12 knnindia.co.in