Full-scale Mass Production of HVLP4 Copper Foil for AI Accelerators
Quality Testing of Batteries with High-Silicon Anode Materials
Lotte Energy Materials announced that it will focus on 'Tech Leadership' and 'Cost Leadership' as its key strategies for 2025, aiming to secure leadership in the battery materials industry through superior technology and cost innovation.
On the 6th, Lotte Energy Materials held a conference call attended by CEO Kim Yeon-seop and other key executives to announce last year's major performance and this year's key strategies.
This year, the company plans to innovate its portfolio centered on high value-added products based on technological capabilities through 'Tech Leadership.' It aims to lead the industry by mass-producing next-generation high-end copper foil for batteries and HVLP4 copper foil for next-generation AI accelerators, developed using hybrid copper foil platform technology. Lotte Energy Materials is conducting quality tests on high-end copper foil applied to next-generation batteries with high-silicon anode materials. The product has received excellent evaluations in terms of battery safety, including superior adhesion to active materials and prevention of swelling phenomena. It is expected to start supply next year after completing quality tests with major customers within this year.
Furthermore, the HVLP4 copper foil applied to AI accelerators, which is attracting attention as a high value-added market, has passed quality tests for the next-generation AI accelerator follow-up model of a North American customer for the first time in the world and is currently supplying initial quantities. In addition, at the end of last year, the company received additional orders for HVLP4 copper foil for the mainstream AI accelerator model switch of the same customer and is supplying the product. Moreover, the HVLP5 product, which has already been developed, is expected to receive customer approval within this year, maintaining continuous superior competitiveness in the copper foil market for AI accelerators.
The company will actively respond to uncertain market environment changes through 'Cost Leadership.' The Malaysian plant, a core production base, will achieve world-class quality and cost competitiveness through cost innovation under the 'RISE 1000' project. By adding accumulated equipment technology and data-based operation technology to the existing high cost competitiveness in Malaysia, the company plans to advance the local plant to the next level.
As for the domestic Iksan plant, the portfolio will shift to focus on the production of high value-added circuit boards such as next-generation copper foil development and copper foil for AI accelerators. High-spec copper foil products of HVLP3 or higher used in AI accelerators are expected to grow by more than 44% annually until 2030. Based on ultra-low reflectance high-end copper foil technology and nano surface treatment patent technology, the company expects to achieve more than 50% market share in high-spec copper foil for AI accelerators.
Lotte Energy Materials aims to overwhelmingly dominate the copper foil market for AI accelerators by accelerating product development and approval speed through strategic cooperation with domestic customers who have global competitiveness in the CCL and PCB sectors and expanding the value chain of applications used in AI data centers.
Next-generation battery materials are also progressing smoothly according to schedule. The company has completed a pilot plant for 3rd generation LFP cathode materials with an annual capacity of 1,000 tons, featuring high energy density and high yield, and plans to produce samples in February and supply them to overseas customers including K-battery companies. Additionally, the pilot plant for sulfide-based solid electrolytes with an annual capacity of 70 tons, completed last September, plans to accelerate quality tests with domestic and international customers based on top-level energy density, stability, and mass production technology in Korea, leading the market.
Kim Yeon-seop, CEO of Lotte Energy Materials, stated, "Only companies with a technology innovation roadmap and execution capability that can respond to battery innovation trends will survive in the secondary battery materials industry. Through our company's superior technology roadmap, we will contribute to battery technology innovation and secure profitability and mid-to-long-term growth through cost competitiveness innovation."
On the same day, Lotte Energy Materials announced its 2024 consolidated financial results, reporting sales of 902.3 billion KRW and an operating loss of 64.4 billion KRW. Sales increased by 11.5% compared to the previous year, but operating profit turned to a loss. Net profit was 54.7 billion KRW, recording a surplus compared to the same period last year.
Sales increased by 93.3 billion KRW year-on-year due to customer diversification and expanded sales in the North American market. However, operating loss occurred due to increased fixed costs from reduced operating rates caused by customer inventory adjustments in the second half and inventory valuation losses from foreign exchange fluctuations of overseas subsidiaries. As a result, consolidated sales in the fourth quarter were 186.4 billion KRW, with an operating loss of 40.1 billion KRW.
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