█ On a consolidated basis, sales recorded KRW 143.7 billion with an operating loss of KRW 34.3 billion… sales declined compared to the previous quarter due to delayed utilization recovery following reduced electric vehicle (EV) sales from major customers.

█ Gradual performance improvement expected through diversification of product applications such as high-value circuit copper foil for AI and battery foil for energy storage systems (ESS)… expansion of AI-related high-value circuit foil business through strategic collaboration with domestic customers and proactive capacity (CAPA) expansion.

█ Expanding high-value circuit foil production capacity for AI by converting the Iksan plant’s battery foil line to circuit foil line for AI… strengthening the competitiveness of the Iksan plant, Korea’s only circuit foil manufacturing base, to meet global big tech companies’ demand for non-China materials and ensure stable supply for customers.

█ Targeting increased sales through differentiated products for various ESS applications… reinforcing collaboration with existing customers centered on the North American region and actively exploring new customers.

█ CEO Kim Yeon-seop stated, “We will swiftly respond to market uncertainties and secure future growth opportunities by transforming our product portfolio to include high-value circuit foils for AI and battery foils for ESS applications.”

LOTTE Energy Materials (CEO Kim Yeon-seop) announced its tentative consolidated results for the third quarter of 2025, reporting sales of KRW 143.7 billion and an operating loss of KRW 34.3 billion. Due to the termination of U.S. EV subsidies, the North American EV market slowed sharply, leading to a drop in EV-related sales from major customers and delaying plant utilization recovery, resulting in a quarter-on-quarter decline in revenue.

From the fourth quarter onward, the company expects a sharp rise in demand for circuit foils used in AI data centers as global big tech companies ramp up investments in AI infrastructure. For battery foil, growth in the North American ESS (Energy Storage System) market driven by domestic battery manufacturers’ expansion is also anticipated.

LOTTE Energy Materials plans to strengthen the capabilities of the Iksan plant—Korea’s only circuit foil production site—to meet global big tech companies’ demand for non-China sourcing and ensure stable supply for its customers. The company will focus on improving profitability in the battery foil business by enhancing collaboration with existing partners in North America and actively pursuing new clients with differentiated technical products for ESS applications.

In particular, the high-value AI circuit foil market is expected to see substantial growth alongside the expansion of the global AI data center industry, which demands advanced materials, components, and equipment. Numerous domestic and overseas customers have requested LOTTE Energy Materials to expand AI circuit foil production capacity, with 2026 order volumes already exceeding current production capacity.

The company will convert the Iksan plant’s battery foil line to a circuit foil line for AI, increasing circuit foil capacity for AI by 1.7 times in 2026 and 5.7 times by 2028 to capture rising customer demand. The Iksan plant produces circuit foils that meet physical properties required for ultra-high-speed data transmission in AI data centers, characterized by low signal loss.

Additionally, as domestic battery makers expand their presence in the North American ESS market, LOTTE Energy Materials plans to strengthen cooperation with existing clients and attract new ones by leveraging the technological distinctions of its thin and thick copper foils designed for various ESS applications.

Thick foils are difficult to manufacture and only a limited number of global copper foil producers can produce them. Unmatched LOTTE Energy Materials manufactures foils with thicknesses exceeding 20μm. It also mass-produces “HiSTEP,” an ultra-thin foil product that simultaneously achieves ultra-thinness, high strength, and high elongation.

CEO Kim Yeon-seop remarked, “We will swiftly respond to market uncertainties and secure future growth opportunities by transforming our product portfolio to include high-value circuit foils for AI and battery foils for ESS applications.”

Meanwhile, as of the end of Q3 2025, LOTTE Energy Materials maintained a consolidated debt ratio of 23.7%, securing strong financial flexibility based on one of the highest levels of financial stability in the industry.