Lotte Energy Materials Corp. aims in the next five years to grab a 30% share of the global market for copper foil, a key component in electric-vehicle batteries, according to its chief executive officer.
(Bloomberg) — Lotte Energy Materials Corp. aims in the next five years to grab a 30% share of the global market for copper foil, a key component in electric-vehicle batteries, according to its chief executive officer.
Battery makers will ramp up output in the coming years as EV demand grows, helping to ease oversupply seen in the copper-foil market at present, CEO Kim Yeon-seop said at a press conference in Seoul on Tuesday.
“The market for copper foil will expand to 2.2 million metric tons by 2030 from 500,000 tons now, led by strong growth by EVs,” Kim said. “Growth will be driven by high-end foils, which have ultra-thinness, higher strength and higher elongation.”
He said the company, a unit of South Korean conglomerate Lotte Group, is targeting 20 trillion won ($15.3 billion) in orders by 2025. Automakers will adopt high-end foil to boost the performance of lithium-iron-phosphate batteries, Kim said.
By 2028, Lotte Energy may have about 240,000 tons of production capacity globally, up from 60,000 tons in 2023, according to the CEO, who said two or three sites are being considered for a possible North America plant, while Spain is an option too. The company is also in talks with battery makers on deals, he said, without elaborating.
Lotte Energy is developing solid-state electrolyte for pilot production by 2024, as well as next-generation silicon anodes and assembly lines for mass production of LFP cathodes, Kim said.
The company, which was called Iljin Materials before Lotte Chemical bought a majority stake and changed the name, posted a loss in the first quarter. Orders for customers in China declined and the cost of running its plant in South Korea rose, according YongJin Jung, an analyst at Shinhan Investment Corp.
Lotte Energy’s shares are down about 6% this year.
Lotte Group is investing in key components for EV batteries as it tries to catch up with South Korean peers LG Group, Samsung and Hyundai Motor Group.
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