Lotte Energy Materials Reports $4.4 Million Operating Loss in Q1

Lotte Energy Materials CI [Photo=Lotte Energy Materials]

Lotte Energy Materials has continued to face losses in the first quarter of 2026, despite efforts to defend its performance through increased demand for high-value copper foil products. The company reported a consolidated revenue of 159.8 billion won (approximately $4.4 million) and an operating loss of 5 billion won (about $4.4 million) on May 11.
In terms of business segments, sales of battery foil for energy storage systems (ESS) and circuit boards increased, aided by improved productivity at its Malaysian factory, a lagging effect from rising copper prices, and better inventory valuation. However, sales of battery foil for electric vehicles (EVs) decreased due to logistics delays in Europe, resulting in a slight decline in overall revenue compared to the previous quarter.
As of the end of the first quarter of 2026, Lotte Energy Materials maintained a debt ratio of 22.2% and a borrowing ratio of 10.6%.
The company anticipates improved performance in the second half of the year due to rising demand for artificial intelligence (AI) data centers and next-generation semiconductor chips. As global tech giants ramp up competition to expand AI data centers, demand for high-performance copper-clad laminates (CCL) is surging. CCL is a key material for printed circuit boards (PCBs), consisting of a layer of copper laminated onto an insulating layer made of fiberglass and special resin.
With continued investment from global tech companies in AI data centers and next-generation semiconductor chips, a structural supply shortage for AI circuit boards, particularly Hyper Very Low Profile (HVLP) boards for high-speed and large-capacity data transmission, is expected.
In response, Lotte Energy Materials plans to accelerate its roadmap for expanding CCL production, aiming to increase its annual output from the current 3,700 tons to 16,000 tons by 2027, with further expansions under consideration after 2028.
Previously, Lotte Energy Materials announced that starting in 2024, its product portfolio would evolve from a focus on EV battery foil to include ESS, high-value circuit boards, and products for power tools and mobile devices, while also launching nickel-plated copper foil and sulfide-based solid electrolyte businesses for next-generation all-solid-state batteries.
Kim Yeon-seop, CEO, stated, "This year, we expect to make a quantum leap as a global leading materials company, leveraging our differentiated high-end products and advanced production capabilities, from high-value circuit boards for AI to next-generation all-solid-state battery materials."

* This article has been translated by AI.

Lee nakyeong