LOTTE Energy Materials Posts Record Q3 Revenue of KRW 289.7 Billion on North American ESS Demand

Revenue more than doubles year over year... operating loss of KRW 21.3 billion
"Copper foil industry enters a new supercycle"
2027 marks shift to a high-end-focused profit structure

LOTTE Energy Materials posted its highest-ever quarterly revenue as it increased copper foil supplies for North American energy storage systems (ESS).

LOTTE Energy Materials said on Nov. 5 that it recorded consolidated revenue of KRW 289.7 billion and an operating loss of KRW 21.3 billion in the third quarter of 2026. Revenue rose 49% from the previous quarter and 102% from the same period a year earlier. The increase was driven by expanded supplies to the North American ESS market and the start of full-scale copper foil shipments to North American automakers. Demand from North American customers, who have made securing non-Chinese supply chains a top priority, led the growth.

The company believes the copper foil market has entered a period of structural supply shortages. Demand for battery copper foil is rising as the North American ESS market grows faster than expected and global electric vehicle makers expand local production in the United States. Meanwhile, investment by major copper foil manufacturers remains cautious, and the company expects demand to outpace supply for several years. In the circuit foil market, demand for high-end products such as high-voltage, low-profile (HVLP) copper foil is forecast to grow by more than 30% annually, driven by increased investment in AI data centers. As existing production capacity for conventional circuit foil is converted to high-end products, shortages of conventional products are also worsening.

LOTTE Energy Materials has designated 2027 as the first year of a shift to a more profitable business structure through a portfolio transition focused on high-end products. In its battery copper foil business, the company plans to fully operate Plants 1 through 6 in Malaysia and build its production capabilities for 6-micron high-end products for ESS, increasing sales to the North American ESS market and global electric vehicle makers. It also aims to restore profitability through the normalization of product prices. In its circuit foil business, the company expects sales volume to more than double in 2027 and plans to make high-end products, led by HVLP, more than 50% of total sales volume. It plans to expand production capacity in stages through 2027 and is also considering further capacity additions focused on high-end products.

Kim Yeon-seop, CEO of LOTTE Energy Materials, said, "Both the battery copper foil and circuit foil markets are entering a period of structural supply shortages, and the copper foil industry is entering a new supercycle. If 2026 was a year for securing production capacity and expanding our customer base, 2027 will be the first year of transitioning to a structurally profitable business model through a portfolio shift focused on high-end products."

This content was produced with the assistance of AI translation services.