Lotte Energy Materials Swings to Loss in Q2 with 31.1 Billion KRW Operating Deficit

Operating Profit and Net Income Turn Negative Year-on-Year
Impact of Downstream Demand Weakness... Attempting a Rebound in the Second Half
High-End Brand Launched Amid Portfolio Shift

Lotte Energy Materials reported a decline in its second-quarter results this year due to sluggish demand in the electric vehicle market.

On August 6, Lotte Energy Materials announced its provisional consolidated results for the second quarter of 2025, posting sales of 204.9 billion KRW and an operating loss of 31.1 billion KRW. Sales decreased by 22.0% compared to the same period last year (262.7 billion KRW), and operating profit, which was 3.0 billion KRW a year earlier, turned into an operating loss of 31.1 billion KRW. Net income for the period also turned negative, recording a loss of 51.4 billion KRW. The company attributed these results to continued inventory adjustments by major customers and persistent weakness in downstream demand, as well as sluggishness in the electric vehicle market, rising exchange rates, and higher raw material prices.

Lotte Energy Materials Malaysia Factory. Lotte Energy Materials

However, compared to the previous quarter, when it posted an operating loss of 46.0 billion KRW in the first quarter, the company was able to partially reduce losses through improved utilization rates. Lotte Energy Materials plans to restore profitability in the second half of the year by diversifying applications centered on non-electric vehicle sectors such as energy storage systems (ESS) and batteries for mobile and electronic devices, as well as by focusing on a high-value-added product mix.

In addition, the company has begun to actively promote its high-specification premium copper foil products as a unified technology brand. Lotte Energy Materials recently became the first in the domestic copper foil industry to consolidate its high-strength, high-elongation, and ultra-thin high-end product lineup under the 'HiSTEP' brand, for which it has completed trademark registration.

Starting in 2026, the company plans to begin full-scale mass production of high-end copper foil for electric vehicles at its Malaysia factory. Lotte Energy Materials aims to secure a leading position in the high-end market by establishing a tailored response system for customers in North America, Europe, and Greater China.

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