Lotte Energy Materials narrows losses with AI material push

May 11, 2026, 10:03 am

		0
Copper foil products manufactured by Lotte Energy Materials. /Lotte Energy Materials

Lotte Energy Materials

said Sunday that it significantly reduced its operating losses in the first quarter thanks to improved cost structures and higher productivity, while accelerating expansion into high-value materials for AI data centers and energy storage systems (ESS).

The company posted consolidated revenue of 159.8 billion won ($114 million) and an operating loss of 5 billion won for the January-March period.

Sales of battery copper foil for ESS applications and circuit foil remained solid, but overall revenue declined slightly from the previous quarter due to weaker sales of electric vehicle battery foil caused by logistics delays in Europe.

Despite continued losses, profitability improved as higher productivity at the company’s Malaysia plant, gains from rising copper prices and improved inventory valuation results helped offset costs.

The company also maintained stable financial health, reporting a debt ratio of 22.2 percent and a borrowing ratio of 10.6 percent as of the end of the first quarter.

Lotte Energy Materials said it expects strong growth in demand for circuit foil driven by expanding investments in AI data centers and next-generation semiconductors by global technology companies.

The company forecast that shortages of HVLP (high-value low-profile) circuit foil for high-speed, high-capacity data transmission would intensify as AI infrastructure demand increases.

To respond, the company plans to accelerate its production expansion roadmap. Annual circuit foil production capacity, currently around 3,700 tons, is scheduled to increase to 16,000 tons by 2027, with additional expansion under review after 2028.

The company also plans to expand its ESS business, particularly in North America. It said preparations are underway to supply ultra-thin copper foil for lithium iron phosphate (LFP) ESS batteries in line with key customers’ conversion of North American production lines to LFP systems.

Lotte Energy Materials is also diversifying its product portfolio beyond EV-focused materials into ESS, AI-related high-value circuit foil, and materials for mobile devices and power tools.

In addition, the company plans to accelerate development of nickel-plated copper foil for next-generation solid-state batteries and sulfide-based solid electrolytes.

Kim Yeon-seop said the company aims to take a leap forward as a global leading materials company through differentiated high-end products and production capabilities.

“This year will mark a turning point for us, from high-value circuit foil for AI applications to next-generation solid-state battery materials,” Kim said.

#Lotte Energy Materials #AI data center #ESS #HVLP copper foil #battery materials