Lotte-Joil Aluminum Collaborate to Supply Raw Materials for Cathode Foil Used in Secondary Batteries

On the 25th, at the headquarters of Joil Aluminum in Gyeongsan-si, Gyeongbuk, Lee Young-ho, CEO of Joil Aluminum, and Cho Hyun-chul, CEO of Lotte Aluminum (right), are posing for a commemorative photo after signing a "Business Agreement for the Supply of Cathode Foil Raw Materials for Secondary Batteries."

[Asia Economy Reporter Kim Hyewon] Lotte Aluminium announced on the 26th that it has signed a business agreement with Joil Aluminium to supply raw materials for cathode foil for secondary batteries, developed collaboratively by the two companies.

Based on this agreement, the two companies plan to strengthen their strategic cooperation domestically and internationally, including joint research for expanding production capacity of cathode foil for secondary batteries and developing competitive materials. Lotte Aluminium aims to secure a stable supply of raw materials to expand its cathode foil business, while Joil Aluminium plans to maximize synergy between the two companies by securing sales channels for raw materials used in cathode foil.

Joil Aluminium plans to increase the supply volume of raw materials for cathode foil for secondary batteries from the existing 5,000 tons to 40,000 tons. To this end, it announced a facility investment plan worth 15 billion KRW in July.

Cho Hyuncheol, CEO of Lotte Aluminium, said, "This agreement with Joil Aluminium will serve as a stepping stone to secure a stable volume of raw materials and preoccupy the rapidly growing cathode foil market for electric vehicle secondary batteries." He added, "We will do our best to respond to the global demand increase by expanding domestic and international production capacity of cathode foil for secondary batteries."

Lee Youngho, CEO of Joil Aluminium, stated, "Through this agreement with Lotte Aluminium and additional investments following the existing hot rolling facility investment, we will solidify our status as a secondary battery material company and establish a system that can actively respond to the increasing demand for cathode foil with advanced technology."

Lotte Aluminium is recently expanding its business portfolio centered on cathode foil for electric vehicle secondary batteries in line with the expansion of the electric vehicle market. In September last year, Lotte Aluminium completed the expansion of the cathode foil production line for secondary batteries at its Ansan Plant 1. This expansion increased Lotte Aluminium’s production capacity for cathode foil for secondary batteries from about 3,000 tons per year to 11,000 tons.

Additionally, Lotte Aluminium is proactively investing overseas, anticipating increased demand for electric vehicle batteries due to strengthened greenhouse gas emission regulations mainly in advanced countries such as Europe. In July, it invested approximately 120 billion KRW to complete a cathode foil production plant with an annual production capacity of 18,000 tons in the T?r?kszentmikl?s industrial complex in Hungary, which is expected to start mass production by the end of this year. As a result, Lotte Aluminium’s integrated domestic and international production capacity for cathode foil is expected to reach 29,000 tons annually.