Lotte Energy Materials announced on the 9th plans to expand AI circuit board production capacity from 3,700 tons to 16,000 tons by next year first half, representing more than a quadruple increase. The expansion responds to structural long-term supply shortages in AI circuit boards driven by rapid AI industry growth, according to CEO Kim Yeon-seop. The company is Korea's only domestic circuit board supplier and has received Big Tech approval for next-generation AI accelerator products, positioning it to capture growing market share through collaboration with major clients.
Lotte Energy Materials Expands AI Circuit Board Capacity to 16,000 Tons
Lotte Energy Materials will increase AI circuit board production capacity from the current 3,700 tons to 16,000 tons by next year first half. The company is reviewing additional capacity expansion plans for high-end circuit boards, including ultra-thin 2-3 micrometer circuit boards for semiconductor packaging.
CEO Kim Yeon-seop stated that "AI circuit boards face structural long-term global supply shortages due to rapid AI industry growth." He explained that high-end circuit boards including ultra-low profile (HVLP) and ultra-thin variants have high technical entry barriers and mass production difficulty, resulting in limited supply centered on a small number of global companies approved by Big Tech.
CEO Kim Yeon-seop Addresses 30 Institutional Investors on the 9th
Lotte Energy Materials held a 'CEO IR DAY' in Yeouido on the 9th for 30 major domestic institutional investors, the company announced on the 10th. CEO Kim Yeon-seop directly communicated with investors about the company's AI circuit board business strategy and high-end battery foil business strategy.
The company has received Big Tech approval for next-generation AI accelerator products and is expanding market share through collaboration with major clients.
Company Plans High-End Battery Foil Business Turnaround
CEO Kim stated the company anticipates an early turnaround in battery foil profitability and emphasized a strategy to upgrade the battery foil business with high-end products. The North American energy storage system (ESS) market has grown rapidly, increasing battery foil demand, while non-Chinese copper foil manufacturers have been converting battery foil production capacity to circuit boards, creating continued supply-demand imbalances in battery foil.
Solid-State Battery Commercialization Reviewed for Year After Next
CEO Kim stated the company is securing technical and process data through scale-up at its solid electrolyte pilot plant for next-generation battery materials. The company is reviewing commercialization of solid-state batteries at 1GWh scale for the year after next.
Kim noted the company currently has a complete materials portfolio needed for AI data centers and presented a mid-to-long-term vision to "increase corporate value through structural growth as a core materials company for AI data centers."
FAQ
What production capacity expansion did Lotte Energy Materials announce on the 9th?
Lotte Energy Materials announced plans to expand AI circuit board production capacity from 3,700 tons to 16,000 tons by next year first half, representing more than a quadruple increase.
What did CEO Kim Yeon-seop say about battery foil business at the investor event?
CEO Kim Yeon-seop stated the company anticipates an early turnaround in battery foil profitability and emphasized a strategy to upgrade the battery foil business with high-end products, citing North American ESS market growth and supply-demand imbalances created by non-Chinese manufacturers converting capacity to circuit boards.
What timeline did Lotte Energy Materials provide for solid-state battery commercialization?
The company is reviewing commercialization of solid-state batteries at 1GWh scale for the year after next, while currently securing technical and process data through scale-up at its solid electrolyte pilot plant.
