Lotte Energy Materials Corp., a leading South Korean battery materials manufacturer, has announced a significant breakthrough in battery technology with the development of a nickel-plated copper foil for use in solid-state batteries. This innovation is expected to be a game-changer in the electric vehicle (EV) industry, providing enhanced conductivity and corrosion resistance, crucial for the performance and longevity of next-generation batteries.
The newly developed nickel-plated copper foil is a next-generation electrolytic copper foil with nickel coatings on both sides. This design not only improves electrical conductivity but also prevents surface corrosion, making it an ideal current collector for sulfide-based solid-state batteries. Such batteries are highly anticipated to replace traditional lithium-ion batteries, offering greater energy density, safety, and longevity.
Lotte Energy has been collaborating closely with major domestic EV battery manufacturers throughout the development process to ensure that the foil meets the stringent requirements of solid-state battery technology. The company is currently testing samples in various manufacturing processes and form factors to optimize the product for mass production.
In addition to its advanced corrosion resistance, Lotte’s nickel-plated copper foil offers cost advantages over other materials like stainless steel and pure nickel foils, which are also used in sulfide-based batteries but are more expensive. The customizable nature of the foil, including its nickel thickness and copper strength, allows it to meet the specific needs of different clients, further strengthening its market position.
This innovation comes at a strategic time for Lotte Energy, which has also secured a significant supply contract with the Samsung SDI-Stellantis joint venture (JV), known as StarPlus Energy (SPE). SPE has selected Lotte Energy as the exclusive supplier of copper foil for its first US battery plant, expected to commence operations later this year. This partnership positions Lotte Energy as a key player in the global battery supply chain, particularly in the North American market, which is poised for growth due to favorable government policies under the Inflation Reduction Act.
The Samsung SDI-Stellantis JV’s decision to move up the launch of its first battery plant from 2025 to late 2024 underscores the urgency to capitalize on US government subsidies. This plant, located in Indiana, is expected to significantly boost Lotte Energy’s earnings, especially as it aims to operate at full capacity, potentially requiring between 16,500 to 19,800 tons of copper foil annually.
Despite the current slowdown in the EV market, Lotte Energy’s strategic partnership with Samsung SDI and Stellantis could lead to a swift recovery in earnings. The copper foil demand from the JV’s first plant alone could generate between 100 billion to 300 billion won in annual sales for Lotte Energy, depending on the plant’s utilization rate. This would be a substantial contribution to the company’s projected revenues, which have already reached 809 billion won for 2023.
Looking ahead, Lotte Energy is also exploring the possibility of building its own copper foil plant in the US, with plans already in motion to seek government approval for a facility in Delaware. This move would further strengthen Lotte’s position in the North American market and ensure it remains competitive in the rapidly evolving EV industry.
