Lotte Energy Materials Posts 34.3 Billion Won Operating Loss in Q3... Deficit Widens

Decline in Electric Vehicle Sales to Major Clients
Delayed Recovery in Utilization Rates Leads to Lower Sales
Gradual Performance Improvement Expected
Through Product Diversification Including High-Value-Added Circuit Foil for AI and Battery Foil for ESS

On November 10, Lotte Energy Materials announced its preliminary consolidated results for the third quarter of this year, reporting sales of 143.7 billion won and an operating loss of 34.3 billion won. Sales decreased by 32% compared to the same period last year, and the operating loss widened further compared to the 31.7 billion won operating loss recorded in the same period last year.

Aerial view of Lotte Energy Materials Iksan Plant located in Iksan, Jeonbuk. The Asia Business Daily DB

A representative from Lotte Energy Materials explained, "The North American electric vehicle market has slowed due to factors such as the elimination of U.S. electric vehicle subsidy policies, leading to a decrease in electric vehicle-related sales to major clients." The company added, "As a result, the recovery in utilization rates was delayed, resulting in lower sales compared to the previous quarter." The representative continued, "From the fourth quarter onward, we expect a significant increase in demand for related circuit foil products driven by increased investments in artificial intelligence (AI) data centers by global big tech companies. For battery foil, we anticipate a clear growth trend in North America as domestic battery clients expand their energy storage system (ESS) businesses."

Lotte Energy Materials plans to strengthen the capabilities of its Iksan plant, the only domestic circuit foil manufacturing base, to meet the demand for non-China sourced materials from global big tech companies and to contribute to the stable supply of products for its clients. The company will focus on enhancing collaboration with existing clients and actively securing new customers by offering technology-customized products tailored for various ESS applications in North America, thereby aiming to improve profitability in the battery foil market.

The company stated, "High-value-added circuit foil for AI is expected to drive significant growth in related materials, components, and equipment industries as the global AI data center market expands. As a result, many domestic and overseas clients are requesting us to expand our AI circuit foil production, and for 2026, client orders have already exceeded our current production capacity."

Lotte Energy Materials plans to convert its battery foil production line at the Iksan plant into an AI circuit foil line, increasing AI circuit foil production capacity by 1.7 times by 2026 and by 5.7 times by 2028, in order to secure client demand ahead of competitors. The Iksan plant currently produces circuit foil with low signal transmission loss properties, meeting the requirements for ultra-high-speed data processing in AI data centers.

Additionally, as domestic battery clients expand into the North American ESS market, the company will strengthen collaboration with existing clients and actively seek new customers by leveraging the technical differentiation between ultra-thin and thick copper foil for ESS applications.

Kim Yeonseop, CEO of Lotte Energy Materials, stated, "Through the transition of our product portfolio to include high-value-added circuit foil for AI and battery foil for ESS, we will respond swiftly to market uncertainties and quickly seize future growth opportunities."

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