"Lotte Declares Ultra-Gap Strategy to Increase High-End Copper Foil Global Market Share to 30% in 5 Years (Comprehensive)"

First Press Conference... CEO Kim Yeonseop Announces Growth Strategy
"World's Only Product Satisfying High Strength and High Elongation Simultaneously
Electric Vehicle Batteries Require About 3700GW by 2030
Copper Foil Demand Will Also Increase... '500,000t → 2,200,000t' Fourfold"

Lotte Energy Materials (formerly Iljin Materials) is significantly strengthening its global high-end copper foil business, aiming to increase its order backlog to 20 trillion KRW by 2025. By 2028, it plans to grow its market share in the high-end copper foil sector to 30%, more than double the 13% share it held in the general-purpose copper foil market in 2021. Copper foil is used to coat the anode material in secondary batteries.

On the 4th, at a press conference held at a hotel in Songpa-gu, Seoul, Kim Yeon-seop, CEO of Lotte Energy Materials, announced the growth strategy, stating, "Based on our industry-first ultra-high-strength, ultra-elongation copper foil technology, we will expand our global key bases in North America, Europe, and Malaysia," adding, "We will become the global No.1 company in high-end copper foil." CEO Kim also said, "Our order backlog target for this year is 15 trillion KRW," and added, "We plan to expand global copper foil production to 240,000 tons by 2028."

To increase production capacity by 10,000 tons, an investment of 100 to 200 billion KRW is required. The investment for the current 80,000-ton expansion has been completed, and an additional investment of several trillion KRW is needed to expand by 160,000 tons. Park In-gu, Head of Corporate Planning, explained the financing plan, saying, "We have secured 600 billion KRW in cash (as of the end of Q1 this year) and plan to finance through internal operating cash flow generated by 2028," adding, "The remainder will be borrowed within a range that does not harm financial soundness." As of the end of Q1 this year, Lotte Energy Materials' borrowing fees amount to about 160 billion KRW. Compared to total assets of 2.4 trillion KRW, liabilities stand at 480 billion KRW, resulting in a healthy debt ratio of 22%.

Kim Yeonseop, CEO of Lotte Energy Materials, is presenting the growth strategy at a press conference held at a hotel in Songpa-gu, Seoul on the 4th. Photo by Lotte Energy Materials

Mass Production of LFP Cathode Active Material by Modifying Existing LMO Process

In March this year, Lotte Energy Materials was incorporated as a subsidiary of Lotte Chemical and announced plans to develop next-generation battery materials as one of its four core growth strategies. CEO Kim stated, "We aim to enter the anode material market through in-house technology development and equity investment in advanced developers," adding, "We plan to complete the development of third-generation silicon composite anode active material at the lab scale within this year."

By next year, pilot production of moisture-stable sulfide-based solid electrolyte products and the establishment of a mass production line for LFP (Lithium Iron Phosphate) cathode active material will also be completed. CEO Kim said, "Electric vehicles equipped with LFP batteries are expected to be mass-produced around 2025," adding, "LFP batteries require ultra-thin copper foil products to improve energy density." Lotte Energy Materials possesses an LMO (Lithium Manganese Oxide) production process similar to that of LFP. By partially modifying the LMO process, LFP can be produced. CEO Kim noted, "However, to compete with China, a strong player in LFP, using the same materials as before would lack competitiveness, so we are approaching this by slightly enhancing the customer's mass production technology," adding, "We plan to collaborate with national research institutes."

‘High-end ultra-gap technology’ was also cited as a growth strategy. CEO Kim said, "In the copper foil market, high quality and supply stability are more important than price, as it is a tech-leading market," adding, "We were the first in Korea to succeed in domestic copper foil production and have led the growth of the copper foil industry by building a diverse product lineup ranging from general-purpose to high-strength, high-elongation, high-value-added high-end products." He further stated, "Electric vehicles are expected to require about 3,700 GW of batteries by 2030, with a scale of 57 million units," and "Current copper foil demand of about 500,000 tons is expected to expand more than fourfold to approximately 2.2 million tons by 2030." He added, "The leading growth product in copper foil will be ultra-thin, high-strength, high-elongation high-end copper foil products."

Copper foil used in electric vehicle batteries is divided into general-purpose and high-end types. Battery foil products are graded based on thickness, strength, and elongation levels. High-end products generally refer to those with a thickness of 6 micrometers (㎛) or less that satisfy either high strength or high elongation. A representative from Lotte Energy Materials said, "Although domestic and Chinese companies are entering the high-end copper foil market, only our company can produce products that simultaneously satisfy both high strength and high elongation."

Kim Yeonseop, CEO of Lotte Energy Materials (center), is answering questions from the press at a meeting held on the 4th at a hotel in Songpa-gu, Seoul. Photo by Lotte Energy Materials

Two to Three Candidate Sites Selected for U.S. Factory... Final Location to Be Announced Possibly Within This Year

To secure a leading position in the high-end copper foil market and stabilize the supply chain, the company is also pursuing 'global base expansion.' The Iksan production plant in Jeonbuk will be utilized as an R&D technology hub for developing new products and process technologies. In Malaysia, where 100% hydropower production is possible, the 5th and 6th plants are being expanded and will enter full-scale mass production in 2024. Additionally, Spain has been confirmed as the European base as part of a localization strategy to respond to the U.S. Inflation Reduction Act (IRA) and the European Union's Critical Raw Materials Act (CRMA).

CEO Kim said, "Demand for high-end products is expected to grow mainly in Europe and North America," adding, "In the European market, entry by new battery companies is expected to accelerate after 2025, and these new battery companies plan to adopt high-end copper foil from the start." Lotte Energy Materials is the only company building a copper foil factory in Spain. Spain has the lowest electricity rates in Europe. The factory will also utilize local solar power plants to supply electricity to the battery copper foil plant.

CEO Kim stated, "In the U.S., due to the IRA, battery companies are accelerating expansions, and demand for 4680 batteries is surging, so the high-end copper foil market will also grow rapidly." Lotte Energy Materials is currently scouting sites for a North American factory. CEO Kim said, "We have been exploring candidate sites for a year, selecting locations based on the ability to achieve RE100, access to affordable renewable energy, and incentives," adding, "We are considering two to three sites and aim to announce the final location to the market within this year."

The company plans to leverage the R&D capabilities of the Lotte Group's chemical division to create synergy in the battery materials business. It will link various product portfolios of lithium-ion and next-generation battery materials, such as electrolyte solvents from Lotte Chemical and aluminum foil from Lotte Aluminium. CEO Kim said, "Through R&D and marketing collaboration with the Lotte Chemical division, we will provide customers with total material solutions for technological innovation."

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