Lotte Energy Materials Reduces Q1 Loss by 85.3%... "Circuit Foil Production to Quadruple"

Sales of 159.8 Billion Won, Operating Loss of 5 Billion Won
"AI Circuit Foil Supply Shortage Expected... Production Expansion Planned"

Lotte Energy Materials Malaysia Plant Exterior. Lotte Energy Materials

Lotte Energy Materials (CEO Kim Yeonseop) announced on May 11 that, based on its consolidated provisional results for the first quarter of this year, the company recorded sales of KRW 159.8 billion and an operating loss of KRW 5 billion.

Lotte Energy Materials posted sales of KRW 170.9 billion and an operating loss of KRW 33.8 billion in the fourth quarter of last year. Compared to the previous quarter, sales decreased by 6.5%, but the operating loss was reduced by 85.3%.

The company stated that while sales of battery foils and circuit foils for energy storage systems (ESS) remained solid, overall sales saw a slight decrease compared to the previous quarter due to lower sales of battery foils for electric vehicles (EVs) caused by logistics delays in Europe.

However, it added that operating profit improved significantly due to increased productivity at the Malaysia factory, raw material lag effects resulting from rising copper prices, and improved inventory valuation gains and losses.

As of the end of the first quarter of 2026 on a consolidated basis, Lotte Energy Materials’ debt ratio stands at 22.2%, and the loan ratio is maintained at 10.6%.

Lotte Energy Materials forecasted a structural supply shortage of AI circuit foils HVLP (Hyper Very Low Profile) for high-speed, large-capacity data transmission, as global big tech companies continue to ramp up investments in AI data centers and next-generation semiconductor chips.

Accordingly, the company plans to accelerate the circuit foil production expansion roadmap it presented in its earnings announcement for the fourth quarter of last year, increasing annual circuit foil production from the current level of 3,700 tons to 16,000 tons by 2027—more than a fourfold increase. The company is also actively considering an additional three-phase expansion after 2028.

Lotte Energy Materials also announced that since 2024, as of 2026, its product portfolio has been upgraded from being centered on battery foils for electric vehicles to now focusing on ESS, high-value-added circuit foils, and applications such as power tools and mobile devices. The company will also begin full-scale operations in nickel-plated copper foil and sulfide-based solid electrolytes for next-generation all-solid-state batteries.

CEO Kim Yeonseop stated, “We expect 2026 to be a breakthrough year for Lotte Energy Materials, enabling the company to make a quantum leap as a global leading materials provider based on differentiated high-end products and advanced production capabilities—ranging from high-value-added AI circuit foils to next-generation all-solid-state battery materials.”

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