Launching of the leading global elecfoil company, ‘LOTTE Energy Materials’

■ Changed company name from ‘Iljin Materials’ to ‘LOTTE Energy Materials’ and appointed Kim Yeon Seop as inaugural CEO
■ Entered stock trade agreement with the strategic decision to expand the overseas eco-friendly EV battery materials market in the US and Europe in October of last year... Completed payment of balance and approved domestic/foreign corporate merger report
■ CEO Kim Yeon Seop, “I will focus on developing this company as a leading company of global battery materials by preoccupying major markets such as in Europe and the US as a key subsidiary of the Lotte Group Chemical Unit, while also developing it as a company that leads innovation in the battery industry”
■ LOTTE Group Chemical Unit constructs key material value chain for secondary batteries such as cathode foil and copper foil, electrolyte organic solvents and separator materials... Aiming at maximizing synergy in the battery materials business and expanding the global market in earnest

LOTTE Chemical completed the acquisition of ‘Iljin Materials’ and confirmed its new company name and CEO.

An extraordinary general meeting of shareholders was held at the Iksan Plant in Jeonju on this day and decided the new company as ‘LOTTE Energy Materials’ and promoted Lotte Chemical Chief Strategy Officer (CSO) as the vice president and CEO.

Since finalizing its decision to acquire Iljin Materials in October to enhance the business capacities of the LOTTE Group Chemical Unit’s battery materials business to improve value for the company, customers and shareholders, it began relevant processes such as domestic and foreign corporate merger reports, and paid the balance to complete the incorporation of the company as a subsidiary of LOTTE Chemical.

LOTTE Energy Materials is a major copper film production company of Korea and recorded 558.2 billion KRW in revenue and 69.7 billion KRW in operating profits until Q3 of ‘22, and it has stable cash flow as it has long-term supply contracts with global battery companies both in Korea and abroad. Based on this, it operates a production base in Korea and Malaysia, and possesses the nation’s top production capacity of 60,000 tons (as of the end of ‘22) among domestic copper film companies. In the future, it plans to expand the plant to 230,000 tons by 2027 through its bases in Malaysia, Spain and the US.

Meanwhile, LOTTE Chemical’s battery materials business initially set its goal to achieve annual sales of 5 trillion KRW by 2030, but it is expected that the completion of this acquisition will make it possible to achieve this goal more quickly and that the scope of revenue will be further expanded to 7 trillion KRW.

LOTTE Group is actively investing in various battery materials businesses through companies within the chemical unit. Together with LOTTE Chemical, LOTTE Fine Chemical, and LOTTE Aluminum, it is directly and indirectly investing and producing the four major battery materials (cathodes, anodes, electrolytes, separators). Lotte Chemical is building a separator PE, PP production and battery electrolyte organic solvent (highly pure EC, highly pure DMC) plant, and LOTTE Aluminum and LOTTE Fine Chemical are currently involved in cathode foil and copper foil businesses (share investment in Solus Advanced Materials). LOTTE Group plans to come up with a range of synergy plans by procuring technologies and constructing cooperative relationships between subsidiaries, while playing a leading role in the future battery materials business.