[Asia Economy Reporter Park Hyungsoo] The stock price of Joil Aluminum is soaring. The news that Lotte Chemical and Lotte Aluminum are jointly promoting an electric vehicle battery material business in the United States appears to be influencing the stock price.
At 9:55 a.m. on the 28th, Joil Aluminum was trading at 2,060 won, up 20.12% from the previous day.
Lotte Chemical and Lotte Aluminum established a joint venture, 'Lotte Aluminum Materials USA,' near Elizabethtown, Kentucky, through their U.S. subsidiaries. This is the first anode foil production base to be established in the United States. Lotte Chemical's U.S. battery materials corporation, 'Lotte Battery Materials USA,' and Lotte Aluminum's U.S. corporation, 'Lotte Aluminum USA,' participate with a 70:30 equity ratio respectively. The company explained that once the factory is completed, it will become the first anode foil production base in the United States.
Anode foil is one of the four main components of lithium-ion batteries. It supports the cathode active material, which determines the capacity and voltage of secondary batteries, while also serving as a pathway for electron movement. It is an essential material with high thermal conductivity that helps dissipate heat inside the battery.
Lotte Aluminum Materials plans to contribute to the localization of K-battery companies by providing stable material partnerships for domestic battery manufacturers’ overseas market expansion through prompt customer support in quality, supply, and delivery stability.
Lotte Chemical is newly entering the anode foil material business following its existing businesses in lithium-ion battery materials such as electrolyte organic solvents and separator materials. Lotte Aluminum has gained an opportunity to preoccupy the related material market by expanding from its anode foil factory in the T?r?kszentmikl?s industrial complex in Hungary to the U.S. market.
Previously, Lotte Aluminum signed a business agreement with Joil Aluminum last year to supply raw materials for anode foil used in secondary batteries. Based on this agreement, Lotte Aluminum and Joil Aluminum plan to further strengthen their cooperative relationship through joint research for material development and increased investment such as boosting anode foil production capacity. Lotte Aluminum aims to maximize synergy by securing stable raw material supply for expanding the anode foil business, while Joil Aluminum secures sales channels for raw materials used in anode foil.
Joil Aluminum raised a large amount of funds last year to expand raw material supply from the existing 5,000 tons to 40,000 tons by expanding its hot rolling facilities. Installation is expected to be completed by December this year. The operating rate of aluminum plate production facilities in the first quarter of this year recorded 95.3%.
In the first quarter of this year, sales reached 166 billion won and operating profit was 20.8 billion won. Sales increased by 70% and operating profit surged by 570% compared to the same period last year.
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