Lotte to build $431 million copper foil factory in Spain

Lotte Energy Materials will invest 560 billion won ($431 million) to build a high-end copper foil factory in Spain, with mass production slated to begin in 2025.

A rendered image of Lotte Energy Materials' copper foil factory in Spain [LOTTE ENERGY MATERIALS]

Lotte Energy Materials will invest 560 billion won ($431 million) to build a high-end copper foil factory in Spain, with mass production slated to begin in 2025.

The Korean company said Monday the factory will be situated at a 440,400-square-meter (108.8-acre) site in Mont-roig del Camp, Spain, and will have 30,000 tons of annual capacity by the end of 2025.

The latest investment was expanded from the initial 500 billion won for a 25,000-ton factory after Lotte Chemical acquired the company in March 2023. Lotte Chemical currently holds 53.3 percent of the copper foil supplier, which was previously known as Iljin Materials.

"The Spanish factory's capacity will be expanded to 30,000 tons and used as a critical base to meet the high-end copper foil demand and satisfy European clients," Lotte Energy Materials CEO Kim Yeon-seop said.

Copper foil is a core component in producing anodes, which are used in lithium-ion batteries for EVs. Copper foil functions as the negative pole to which lithium ions flow from the positive pole as a battery releases electricity. Around 35 to 40 kilograms (77 to 88 pounds) of copper foil is required to make an EV.

The company's high-quality copper foil has a thickness of 6 micrometers or less, as well as a high elongation rate and intensity.

Lotte Energy Materials has an annual copper foil production capacity of 60,000 tons and plans to push this figure up to 240,000 tons by 2028.

The company is also expanding production capacity at its Malaysian plant with two new facilities under construction. When fully operational in 2024, the plant will have a manufacturing capacity of 60,000 tons from the previous 40,000 tons. The plan is to further increase the figure to 90,000 tons by 2028.

BY SARAH CHEA [chea.sarah@joongang.co.kr]