diff --git a/CMakeLists.txt b/CMakeLists.txt
index e5e5b846e5..cc5327c8b3 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -106,10 +106,6 @@ foreach(__var ROCM_ROOT CRAY_ROCM_ROOT ORNL_ROCM_ROOT CRAY_ROCM_PREFIX
   endif()
 endforeach()
 
-set(CMAKE_INSTALL_LIBDIR
-    "lib"
-    CACHE PATH "Default installation directory for libraries")
-
 # =================================================================================================
 # OPTIONS
 option(CMAKE_POSITION_INDEPENDENT_CODE "Enable position independent code" ON)
diff --git a/make_cp2k.sh b/make_cp2k.sh
index d6bb56006c..db27114208 100755
--- a/make_cp2k.sh
+++ b/make_cp2k.sh
@@ -1363,6 +1363,7 @@ if [[ ! -d "${CMAKE_BUILD_PATH}" ]]; then
         -DBUILD_SHARED_LIBS=${BUILD_SHARED_LIBS} \
         -DCMAKE_BUILD_TYPE="${CP2K_BUILD_TYPE}" \
         -DCMAKE_INSTALL_PREFIX="${INSTALL_PREFIX}" \
+        -DCMAKE_INSTALL_LIBDIR="lib" \
         -DCMAKE_INSTALL_MESSAGE="${INSTALL_MESSAGE}" \
         -DCMAKE_SKIP_RPATH="ON" \
         -DCMAKE_VERBOSE_MAKEFILE="${VERBOSE_MAKEFILE}" \
@@ -1380,6 +1381,7 @@ if [[ ! -d "${CMAKE_BUILD_PATH}" ]]; then
         -DBUILD_SHARED_LIBS=${BUILD_SHARED_LIBS} \
         -DCMAKE_BUILD_TYPE="${CP2K_BUILD_TYPE}" \
         -DCMAKE_INSTALL_PREFIX="${INSTALL_PREFIX}" \
+        -DCMAKE_INSTALL_LIBDIR="lib" \
         -DCMAKE_INSTALL_MESSAGE="${INSTALL_MESSAGE}" \
         -DCMAKE_SKIP_RPATH="ON" \
         -DCMAKE_VERBOSE_MAKEFILE="${VERBOSE_MAKEFILE}" \
@@ -1401,6 +1403,7 @@ if [[ ! -d "${CMAKE_BUILD_PATH}" ]]; then
         -DCMAKE_EXE_LINKER_FLAGS="-static" \
         -DCMAKE_FIND_LIBRARY_SUFFIXES=".a" \
         -DCMAKE_INSTALL_PREFIX="${INSTALL_PREFIX}" \
+        -DCMAKE_INSTALL_LIBDIR="lib" \
         -DCMAKE_INSTALL_MESSAGE="${INSTALL_MESSAGE}" \
         -DCMAKE_SKIP_RPATH="ON" \
         -DCMAKE_VERBOSE_MAKEFILE="${VERBOSE_MAKEFILE}" \
diff --git a/tools/toolchain/build_cp2k.sh b/tools/toolchain/build_cp2k.sh
index 981a109e8b..b8a671c904 100755
--- a/tools/toolchain/build_cp2k.sh
+++ b/tools/toolchain/build_cp2k.sh
@@ -178,7 +178,8 @@ source "${TOOLCHAIN_INSTALL_DIR}/setup"
 source "${TOOLCHAIN_INSTALL_DIR}/toolchain.conf"
 
 # Generate cmake options for compiling cp2k
-CMAKE_OPTIONS="-DCMAKE_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX} -DBUILD_SHARED_LIBS=${BUILD_SHARED_LIBS}"
+CMAKE_OPTIONS="-DCMAKE_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX} -DCMAKE_INSTALL_LIBDIR=lib"
+CMAKE_OPTIONS+=" -DBUILD_SHARED_LIBS=${BUILD_SHARED_LIBS}"
 if [[ ${CMAKE_INSTALL_PREFIX} == ${CP2K_ROOT}/* ]]; then
   CMAKE_OPTIONS+=" -DCP2K_DATA_DIR=${CP2K_ROOT}/data"
 fi