Lotte Energy Materials CEO Kim Yeon-seop at InterBattery Europe 2024 in Munich, Germany
MUNICH – Lotte Energy Materials Corp. is one of South Korea’s leading battery materials specialists.
Formerly known as Iljin Materials Co., Lotte Energy has been in the industry for decades, supplying its products to global electric vehicle battery makers, including China’s BYD, Korea’s LG Energy Solution Ltd. and Samsung SDI Co.
Chief Executive Kim Yeon-seop says the time has come for Lotte Energy to make another giant leap forward.
“In a few years, Lotte will no longer be a company that only produces copper foil. We will also make base materials for all-solid-state batteries, silicon anodes and other next-generation batteries. We aim to be a top-tier battery materials maker,” he said in an interview on the sidelines of InterBattery Europe 2024 in Munich, Germany.
‘We have already received several requests from solid-state battery makers for our samples,” he said.
Battery makers and automakers are striving to develop all-solid-state batteries (ASSBs) as they feature longer mileage and a shorter charging time than current EV batteries due to their higher energy density.
Lotte Energy Materials’ booth at InterBattery Europe 2024
LG Energy, the world’s second-largest battery maker, said in 2021 that it had developed a next-generation solid-state battery technology that is safer and more durable than existing ones.
Lotte Chemical Corp., a unit of Lotte Group, bought a controlling stake in Iljin Materials for 2.7 trillion won ($1.9 billion) in 2022 and renamed it Lotte Energy Materials.
2024 COPPER FOIL SALES SET AT $3.6 BILLION
At the European battery expo, CEO Kim presented an ambitious 2024 goal of clinching 5 trillion won worth of new orders for high-end copper foil, a key battery material.
“Recent battery trends include the development of the 46 series, dry manufacturing process and improved energy density, which are impossible to achieve with existing copper foil,” he said. “Clients increasingly demand thinner copper foil, which requires advanced technology as it must withstand the high-speed battery manufacturing process that generates heat.”
A copper foil, also known as elecfoil, is a thin foil that surrounds the anode, the negative end of a lithium-ion battery. High-strength copper foils are essential to making safer, high-density rechargeable batteries.
Lotte Group’s senior executives, including the group chairman’s eldest son Shin Yu-yeol (center), show up at InterBattery Europe 2024 in Munich
A thin copper foil less than 10 micrometers thick made through electrolysis of a copper sulfate solution, elecfoil is also used to make cathode collectors in rechargeable lithium batteries. It is widely used in EVs and energy storage systems.
In 2022, Lotte said it developed a new ultra-high tensile elecfoil, which can significantly improve the mileage, power and stability of EVs.
The Lotte chief said in July last year the company aims to grab 30% of the global copper foil market within the next five years by posting annual sales growth of 20% until then.
RISING LFP DEMAND TO BOOST COPPER FOIL SALES
Kim said the outlook for Lotte’s mainstay copper foil business is bright, with the rising demand for lithium iron phosphate (LFP) batteries.
LFP batteries have been mainly produced by Chinese companies such as Contemporary Amperex Technology Co. (CATL), the world’s top battery maker, and BYD while Korean battery makers have been concentrating on more expensive nickel-cobalt-manganese (NCM) cells.
However, demand for LFP cells is growing amid rising battery raw material prices and electric car makers’ penchant for low-end models. LFP batteries are also more stable, making them less vulnerable to fire, although they are lower in energy density.
The CEO said automakers are increasingly adopting high-end foil to boost the performance of LFP batteries, which are cheaper than their NCM counterparts.
Lotte Energy’s elecfoil, a thin copper foil used for cathode collectors in rechargeable lithium batteries
Lotte Energy Materials saw its first-quarter high-end copper foil sales rise 60% from the year-earlier period.
Company officials expect high-end foils, which have ultra-thinness, higher strength and higher elongation, to account for more than two-thirds of its new orders.
“We’re converting our production facility for general-purpose foil in Iksan, Korea to a high-end product line,” said the CEO.
Last September, Lotte said it filed for US government permission to build a copper foil plant in Delaware to meet growing demand in North America.
The company is also seeking to build a plant in Spain, which it says will serve as its hub for European operations.
Reflecting Lotte’s keen interest in the battery material business, senior Lotte Group executives also attended InterBattery Europe 2024. They include Shin Yu-yeol, group Chairman Shin Dong-bin’s eldest son and executive director of Lotte Holdings’ future growth business division; Lotte Chemical CEO Lee Hoon-ki; and Choi Yon-su, CEO of Lotte Infracell Co. as well as Lotte Aluminum Co.
By Sang-Hoon Sung
uphoon@hankyung.com
In-Soo Nam edited this article.
