# Lotte Energy Materials hits record sales on North American grid foil *Third-quarter revenue surged 101.6% to 289.7 billion won on energy storage demand, while operating losses narrowed 37.9% to 21.3 billion won.* **Published:** November 5, 2026 **By:** Seung-min Park **Section:** Batteries & Electric Vehicles — South Korea **Format:** Company Watch **Confidence:** high **Source:** https://eastasiabrief.com/batteries-ev/lotte-energy-materials-hits-record-sales-north-american-grid-1143 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - Lotte Energy Materials reported record Q3 revenue of 289.7 billion won on Nov. 5, 2026, up 101.6% year-on-year - Operating loss widened to 21.3 billion won on Malaysia Plant 5 ramp-up costs, while EcoWell divestment yielded 170.8 billion won - Malaysia Plant 6 begins commercial production in Q4 2026 ahead of expanding circuit foil capacity to 16,000 tons in 2027 ![A worker wearing safety glasses monitors an industrial machine winding a large roll of copper foil inside a factory. (AI-generated image)](https://eastasiabrief.com/media/2026-11-05-7036b80dc538.webp) *A worker wearing safety glasses monitors an industrial machine winding a large roll of copper foil inside a factory. (AI-generated image)* Lotte Energy Materials reported record quarterly revenue of 289.7 billion won ($216.5 million) on Nov. 5, 2026, driven by expanding copper foil shipments for North American power grid storage systems. The quarterly revenue total increased 101.6% from a year earlier and climbed 49.2% from the preceding quarter. Shipments expanded as utility developers installed commercial batteries alongside artificial intelligence data center campuses, the company said. Operating results remained negative despite the sales surge, posting an operating loss of 21.3 billion won ($15.9 million). The shortfall narrowed 37.9% from a 34.3 billion won loss in the third quarter of 2025, according to the regulatory filing. The deficit widened by 4.4 billion won compared to the second quarter. Initial production overhead at the newly commissioned Plant 5 in Malaysia generated depreciation expenses that outpaced early gross production margins, the company said. Net income swung to a profit of 70.4 billion won ($52.6 million), ending a streak of bottom-line losses. The company posted a net loss of 24.5 billion won during the same three-month span in 2025. A one-off asset sale generated the profit turnaround. Lotte Energy Materials booked an accounting gain of 111.1 billion won after completing the sale of subsidiary EcoWell in September. The materials maker sold a 90% stake in EcoWell to private equity firm Rilson Private Equity. The divestment brought in 170.8 billion won in cash to finance battery material manufacturing lines. Underlying cash generation showed signs of stabilization. Earnings before interest, taxes, depreciation and amortization turned positive at 5.6 billion won, recovering from operational losses earlier this year. Capital expenditures lifted leverage ratios across the balance sheet. Total borrowings reached 381.9 billion won at the end of September, more than doubling from 184.6 billion won twelve months earlier. The borrowing growth raised the debt-to-equity ratio to 32.6%, up from 23.7% in the third quarter of 2025. Liquid reserves from the EcoWell divestment cushioned working capital requirements. Surging shipments of energy storage system foil offset persistent weakness across passenger electric vehicles. Automated data centers require round-the-clock power supplies, forcing regional utilities to build dedicated battery farms. American trade rules also accelerated contract gains for South Korean component producers. Utility developers moved procurement away from Chinese vendors to comply with federal supply chain sourcing standards. Energy storage cells rely on six-micrometer copper foil — an ultra-thin metal layer that acts as the negative electrode current collector. The specialized foil must withstand intense mechanical stress during continuous daily charge cycles. Lotte Energy Materials concentrates large-scale electrode manufacturing at its overseas complex in Sarawak, Malaysia. The site uses local hydroelectric power to lower electricity operating costs below domestic South Korean factory baselines. Operating line additions remain on schedule in Southeast Asia. Plant 6 at the Sarawak facility will begin commercial production in the fourth quarter of 2026 to fulfill delivery commitments, the company said. Chief Executive Kim Yeon-seop said global foil markets are moving into an extended structural supply shortage. Competing suppliers have frozen manufacturing investments following two years of depressed commodity cell pricing, Kim said. Demand for printed circuit board foil accelerated alongside utility battery demand. High-performance computing modules require hyper very low profile foil — an ultra-smooth copper sheet that curbs signal attenuation at high frequencies. The company expects artificial intelligence computing hardware to expand high-performance circuit foil demand by over 30% annually. General-purpose lines are already converting toward high-specification server products, the company said. Management plans to double circuit foil shipments next year while expanding premium products above 50% of volume. Annual circuit foil capacity will increase from 6,700 metric tons to 16,000 metric tons. Unit processing margins remain the critical variable for sustained operating profit recovery. The company has initiated price renegotiations with cell manufacturers to reflect higher utilization and specialized surface treatments. Executive leadership designated 2027 as the baseline operational year for its high-value product portfolio shift. The production roadmap prioritizes high-tensile energy storage foil and accelerator substrates over standard vehicle materials. The regulatory filing does not state the exact volume breakdown between vehicle foil and utility energy storage foil in third-quarter deliveries. Management has not published delivery figures for individual North American battery customers. Lotte Energy Materials scheduled an investor briefing for later on Nov. 5, 2026, to detail Sarawak production timelines and revised pricing guidance. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Lotte Energy Materials Q3 ESS shipment surge | Lotte Energy Materials reports record 289.7 billion won revenue and expands high-end circuit foil target to 16,000 tons | Chinese copper foil exporters face reduced North American market access under stringent utility sourcing rules | Japanese circuit substrate makers face rising competition as Korean mills double high-frequency HVLP foil lines | North American power grid developers secure non-Chinese foil supplies to support round-the-clock AI data center loads | ## In this story - **Companies:** Lotte Energy Materials - **Tickers:** 020150.KS - **Exposed:** EcoWell, Rilson Private Equity - **Impact:** Supply Chain, Pricing, Capex ## Primary sources 1. fss.or.kr 2. news1.kr 3. mt.co.kr 4. businesspost.co.kr 5. thelec.kr --- Cite as: East Asia Brief, "Lotte Energy Materials hits record sales on North American grid foil," November 5, 2026. https://eastasiabrief.com/batteries-ev/lotte-energy-materials-hits-record-sales-north-american-grid-1143