█ Consolidated revenue of KRW 677.5 billion and operating loss of KRW 145.2 billion in 2025; Debt ratio stands at a stable 23.1% as of Q4 2025.
█ Strategic shift from scale-driven growth to profitability enhancement through qualitative growth, along with efficient investment to secure next-generation battery materials and future core competitiveness.
█ CEO Kim Yeon-seop said, “We will focus our capabilities on expanding sales of Elecfoil for PCB for AI applications and preempting the market through industry-standardization of high-end Elecfoil for Secondary Battery,” and added, “In alignment with the localization of the value chain pertaining to AI substrate materials, the Iksan plant—the only Elecfoil for PCB facility in Korea—will expedite the transition to Elecfoil for PCB lines, whereas the Malaysia plant will enhance its operational efficiency through the diversification of its portfolio of high-end Elecfoil for Secondary Battery products tailored for ESS and mobile applications.”
LOTTE Energy Materials (CEO Kim Yeon-seop) announced its 2025 consolidated financial results, reporting revenue of KRW 677.5 billion and an operating loss of KRW 145.2 billion.
Revenue decreased by 24.9% year-on-year, while operating profit and net income both recorded losses. Ongoing weakness within downstream sectors, both utilization rates and sales volumes experienced a downturn, while financial losses continued to be sustained as a result of the inescapable fixed costs linked to plant operations.
CEO Kim Yeon-seop stated, “We will concentrate our efforts on expanding sales of Elecfoil for PCB for AI applications and securing early market leadership through the industry standardization of high-end Elecfoil for Secondary Battery products.” He added, “As the AI substrate materials value chain becomes increasingly localized, the Iksan plant—the only Elecfoil for PCB plant in Korea—will focus on accelerating its conversion to Elecfoil for PCB lines, while the Malaysia plant will work toward improving performance by diversifying its portfolio of high-end Elecfoil for Secondary Battery products for ESS and mobile applications.”
LOTTE Energy Materials plans to fully convert the Iksan plant to Elecfoil for PCB lines by 2027 to meet growing demand for high value-added Elecfoil for PCB for AI applications. With the full-scale supply of AI network Elecfoil for PCB, the company expects related revenue to grow by more than 2.6 times. Strategic partnerships with domestic clients are facilitating the smooth supply of HVLP4 products for next-generation AI accelerators, and plans for mass production are in line with the customers' product launch timelines.
Demand for high-end Elecfoil for Secondary Battery is increasing as rising copper prices and changes in tariff environments are driving customers to reduce copper weight in battery production. Because of this, battery manufacturers are simultaneously demanding properties that are ultra-thin, high-strength, and high-elongation. The company's sophisticated high-end Elecfoil for Secondary Battery technology and mass production capabilities are drawing attention. A North American joint venture customer has chosen its products exclusively for ESS applications, and mass production is set to start soon.
Meanwhile, with an annual capacity of 70 tons, LOTTE Energy Materials runs the largest pilot facility in the world for solid electrolyte production for all-solid-state batteries. The business has obtained relevant patents and developed the ability to precisely control particle size without performance degradation through proprietary technology. It has also achieved stable mass-production process capabilities.
In close cooperation with top-tier worldwide leaders in all-solid-state batteries, the company is currently examining plans to increase capacity to the 1 GWh level. The commercialization of customers' all-solid-state batteries is anticipated to be aided by LOTTE Energy Materials' steady supply of solid electrolytes that satisfy performance, safety, and cost requirements.
