Expansion of Overseas Market for Eco-Friendly Electric Vehicle Battery Materials
Stock Purchase Agreement Signed Following Decision
Lotte Chemical has completed the acquisition of Iljin Materials and finalized the new company name and CEO.
On the 14th, Lotte Chemical held an extraordinary general meeting at its Iksan plant in Jeonbuk, deciding on "Lotte Energy Materials" as the new company name. Kim Yeon-seop, Head of Strategic Planning at Lotte Chemical (CSO), was promoted to Vice President and appointed as CEO.
Last October, Lotte Group made a decisive move to acquire Iljin Materials to enhance the business capabilities of its chemical group's battery materials division and to increase value for the company, customers, and shareholders. Domestic and overseas corporate merger filings were completed, and on this day, the final payment was made, completing the incorporation of Iljin Materials as a subsidiary of Lotte Chemical.
Newly appointed CEO Kim Yeon-seop stated, "Lotte Energy Materials is a company with core technologies that have built a diverse product lineup ranging from general-purpose copper foil products to high-strength, high-elongation high-value-added product groups, showing promising future growth potential. As a key subsidiary of Lotte Group's chemical division, we will grow into a global leading battery materials company by securing major markets such as Europe and the United States, while also developing into a company that leads innovation in the battery industry."
Lotte Energy Materials is a major domestic copper foil manufacturer. Until the third quarter of last year, it recorded sales of 558.2 billion KRW and an operating profit of 69.7 billion KRW. It has stable cash liquidity through long-term supply contracts with domestic and international global battery companies. Based on this, it operates production bases in Korea and Malaysia and holds the top production capacity among domestic copper foil companies with 60,000 tons (as of the end of last year). Going forward, it plans to expand its factories to 230,000 tons by 2027 through bases in Malaysia, Spain, and the United States.
Meanwhile, Lotte Chemical's battery materials business initially set a target of 5 trillion KRW in annual sales by 2030, but with this acquisition completed, it is expected to achieve the target earlier and expand sales to 7 trillion KRW.
Lotte Group is actively investing in various battery materials businesses through its chemical group companies. Along with Lotte Chemical, Lotte Fine Chemical, and Lotte Aluminum, it is directly and indirectly investing in and producing the four major battery materials (cathode materials, anode materials, electrolytes, separators). Lotte Chemical is constructing factories for PE and PP for separators and organic solvents for battery electrolytes (high-purity EC, high-purity DMC). Lotte Aluminum and Lotte Fine Chemical are engaged in cathode foil and copper foil (through equity investment in Solus Advanced Materials) businesses, respectively. Lotte Group plans to lead the future battery materials business by securing technology and establishing cooperative relationships among affiliates to derive various synergies.
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