Lotte Energy Materials narrows Q2 operating loss by 45.7% on strong circuit foil sales

Lotte Energy Materials posted consolidated sales of 194.2 billion won ($136 million) and an operating loss of 16.9 billion won in the second quarter of this year, the company announced Thursday.

Sales fell 5 percent from the same period last year, but the operating loss narrowed by 45.7 percent. Steady sales of battery foil — copper foil used in ESS batteries — and circuit foil, a copper foil used in AI semiconductors, drove the improvement. "Demand for non-Chinese circuit foil is surging, led by North American companies," a company official said.

The battery foil business is recovering, driven by rapidly growing ESS demand. To meet rising customer demand, Lotte Energy Materials began full operation of its fifth factory in Malaysia last month. The company also plans to bring its sixth factory online in the fourth quarter of this year, moving up the original schedule from next year.

"Based on our differentiated portfolio spanning high-end circuit foil to battery foil products, we expect to enter a full-fledged growth trajectory within the AI data industry," CEO Kim Yeon-seop said. He added that the company would "continue to grow into a global top-tier materials company with high-end products and advanced production capabilities, with all employees working together to meet the expectations of investors and customers."