Lotte Energy Materials continued to experience operating losses in the second quarter of 2026. The company plans to improve its performance through the full-scale operation of its battery foil plant in Malaysia in the second half of the year.
On August 6, Lotte Energy Materials announced its preliminary results for the second quarter, reporting sales of 194.2 billion won and an operating loss of 16.9 billion won. Sales increased by 21.5% from 159.8 billion won in the previous quarter, while the operating loss narrowed compared to 31.1 billion won in the same period last year. The company maintains a debt ratio of 31.5% and a borrowing ratio of 18%.
Lotte Energy Materials attributed the significant revenue increase to rising sales of BBU for AI data centers, high-output small batteries for power tools, and circuit boards for energy storage systems (ESS) in North America.
The circuit board market has rapidly shifted from conventional IT circuit boards to high-end circuit boards optimized for AI data centers. The expansion of high-tech technology into the general PCB sector has led to significant changes in the technical application of circuit boards. Notably, demand for non-Chinese products has increased in North America, raising expectations for the expansion of high-value circuit board sales.
In response, Lotte Energy Materials began full-scale operations at its fifth plant in Malaysia in July and plans to accelerate the operation of its sixth plant, aiming for early production in the fourth quarter. The Malaysian battery foil plant is set to transition to full production and sales.
CEO Kim Yeon-seop stated, "We will enter a growth trajectory in the AI data industry based on our differentiated portfolio, from high-end circuit boards to battery foil products. We will continue our efforts to grow into a global top-tier materials company."
Meanwhile, Lotte Energy Materials, the only circuit board manufacturer in South Korea, previously announced plans to quadruple its circuit board production capacity by the first half of 2027 to meet the growing demand from AI applications.
* This article has been translated by AI.
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