Lotte Energy Materials, a South Korean conglomerate, has announced its strategic venture into Spain’s burgeoning electric vehicle (EV) market with the establishment of a cutting-edge copper foil production factory. This facility, set to be located near Tarragona in the Catalonia region, is projected to produce up to 30,000 tonnes of high-quality copper foils annually, dedicated to powering electric car battery cells. The move underscores Lotte’s commitment to contributing to the global shift towards sustainable transportation solutions.
Lotte Energy Materials, a subsidiary of Lotte Corporation, emerged in March 2023 following its acquisition of foil specialist Iljin Materials. The subsidiary’s acceptance into the Volkswagen-led eMobility consortium, ‘Future: Fast Forward,’ positions it as the first South Korean company to be part of this forward-thinking initiative in Spain. With this new development, it is highly anticipated that Lotte Energy Materials will play a pivotal role in supplying copper foils to the upcoming PowerCo battery factory in Sagunt, near Valencia.
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The forthcoming copper foil factory will be strategically situated in Mont-Roig del Camp, a Catalan town located in the province of Tarragona, in northeastern Spain. The ambitious project is set to be completed by 2025, with an initial investment of 560 billion South Korean won (equivalent to approximately 391 million euros). The factory’s projected annual production capacity of 30,000 tonnes is poised to meet the escalating demand for high-quality copper foils in the EV industry. Furthermore, the site holds the potential for expansion up to an impressive 100,000 tonnes per year, offering room for future growth.
Notably, Lotte Energy Materials has secured substantial support from the Spanish government through the PERTE funding program, underscoring the collaborative efforts to promote sustainable technologies and bolster the country’s economic landscape.
With a site encompassing 440,000 square meters, Lotte Energy Materials is not only prioritizing production but also exploring the realm of renewable energy. The conglomerate has earmarked an additional 500,000 square meters of land for potential solar power generation, aligning with its commitment to environmentally conscious operations.
As the project gears up for its anticipated commencement in the latter half of 2023, Lotte Energy Materials has revealed architectural renderings showcasing a visionary layout. Interestingly, the facility’s design situates it amidst pastoral landscapes, in contrast to traditional industrial settings. This innovative approach embodies the conglomerate’s commitment to harmonizing industrial progress with ecological considerations.
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Lotte Energy Materials has adjusted its production timeline in response to evolving market dynamics. Rather than the initially planned 25,000 tonnes by 2024, the company has revised its projection to produce 30,000 tonnes of copper foils annually from 2025. This strategic shift reflects Lotte’s adaptability and responsiveness to the evolving preferences and requirements of European customers.
Currently, Lotte Energy Materials boasts an annual copper foil production capacity of 60,000 tonnes, sourced from facilities in South Korea and Malaysia. The company has ambitious aims to capture 30 percent of the global high-value copper foil market by 2028, with an impressive annual capacity of 240,000 tonnes. The introduction of the Spanish factory, with its potential to contribute up to 100,000 tonnes per year, positions Lotte Energy Materials to play a significant role in fulfilling these goals.
