Lotte Energy Materials ramps shipments as ESS and North American demand improve

Lotte Energy Materials is increasing battery copper foil shipments to energy storage system (ESS) and North American customers as electric-vehicle demand remains uneven, while converting capacity toward high-value circuit foil for AI accelerators and network equipment. The company reported second-quarter revenue of ₩194.2 billion (approximately $141.0 million), up 21% from ₩159.8 billion, and SK Securities projects third-quarter revenue of ₩262.2 billion (approximately $189.5 million), with shipments rising 43% from 6,100 tons to 8,750 tons. North American demand is supported by U.S. restrictions on Advanced Manufacturing Production Credit eligibility when more than 40% of battery costs come from Foreign Entities of Concern, including China. Lotte’s factory utilization rate rose from 66.6% to 72.1% in the second quarter, but ESS-grade foil carries lower margins than EV foil and expansion-related depreciation remains a burden. SK Securities expects a third-quarter operating loss of ₩20.4 billion (approximately $14.7 million), compared with ₩16.9 billion (approximately $12.2 million) in the second quarter. Longer-term earnings could benefit from higher circuit foil prices, high-value HVLP copper foil and potential semiconductor packaging supply agreements, although yields on technically demanding 2–5μm products with surface roughness of 0.8μm or less remain a major challenge.

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