█ Visit to a secondary battery plant for electric vehicle chargers to learn about key business issues
█ Chairman Shin asks to 'secure cost competitiveness and strive to produce the world's highest quality Elecfoil'
LOTTE Chairman Shin Dong-bin visited LOTTE ENERGY MATERIALS' smart factory in Kuching, Sarawak, Malaysia, on July 17 to inspect the secondary battery material business and encourage local employees. This is the latest in a series of visits to new businesses, following his visit to EVSIS's new factory in Cheongju last month to learn more about the electric vehicle charger business. Mr. Lee Hoon-ki, General Manager of LOTTE Chemical Group, and Mr. Kim Yeon-seop, CEO of LOTTE ENERGY MATERIALS, joined the visit.
▲ LOTTE Chairman Shin Dong-bin (Fourth From Left) Visits the Company's New Factory in Kuching, Sarawak, Malaysia, on Sunday. LOTTE ENERGY MATERIALS' Smart Factory in Kuching, Sarawak, Malaysia, to Inspect the Current Status of Its Secondary Battery Materials Business. LOTTE ENERGY MATERIALS Plans to Utilize the Malaysian Smart Factory as a Production Base for Its Overseas Expansion. Here, LOTTE Chairman Shin Dong-bin Inspects the Elecfoil Products Produced at the Malaysian Smart Factory.
LOTTE ENERGY MATERIALS has been producing Elecfoil in Malaysia since 2019. With the addition of 20,000 tons of production capacity at the 5th and 6th plants, which were completed late last year, the annual production capacity of the Malaysia Smart Factory has increased to 60,000 tons. This is 75% of LOTTE ENERGY MATERIALS' total Elecfoil production. Plans are in place for full-scale mass production of plants 5 and 6 in the second half of this year, and LOTTE ENERGY MATERIALS plans to utilize Malaysia as a strategic production base for its overseas expansion by continuously increasing production. Elecfoil foil is a thin film made of copper and is used in the cathode collector of secondary batteries. The products produced by the Malaysian smart factory are characterized by a thin thickness of 8㎛(micrometers) or less.
'Utilizing Malaysia's location advantage, we will further enhance our cost competitiveness and strive to produce the world's highest quality Elecfoil,' said Chairman Shin Dong-bin, calling on the company to lead the market by strengthening its intrinsic competitiveness. LOTTE ENERGY MATERIALS posted record sales of KRW 890 billion last year, up 11% from 2022, thanks to increased sales to major customers and new customer orders.
The LOTTE ENERGY MATERIALS Malaysia Smart Factory has secured cost competitiveness based on low electricity and labor costs compared to Korea. In addition, Malaysia has consistent temperature and humidity throughout the year, which is advantageous for maintaining the quality of Elecfoil, and abundant rainfall and a power grid based on hydropower. In particular, the use of hydropower has received positive responses from overseas customers who emphasize ESG(environmental, social, and governance) management. LOTTE ENERGY MATERIALS currently operates production facilities in Iksan, Jeollabuk-do, and Malaysia, and is planning to build Elecfoil plants in Spain and the United States to serve the European and North American markets.
Meanwhile, LOTTE acquired Iljin Materials in 2023 for KRW 2.7 trillion to enter the secondary battery materials business. The secondary battery materials business falls under the sustainability sector of LOTTE 's four new growth themes, which include bio & wellness, mobility, sustainability, and new life platform.
