Samsung SDI has selected Lotte Energy Materials as the sole supplier of copper foil for its first U.S. battery plant, a joint venture with Stellantis. The plant, which will be operated by their joint venture company StarPlus Energy (SPE), is scheduled to begin operations in Indiana later this year.
Lotte Energy, formerly Iljin Materials, was the only supplier to successfully complete SPE’s extensive quality assessment process, which typically takes a year. Copper foil serves as a critical element in lithium-ion batteries, enclosing the anode and enabling improved safety and energy density.
The selection of Lotte Energy coincides with SPE’s decision to accelerate the start-up of its first U.S. facility in order to take advantage of government incentives under the Inflation Reduction Act. Plans are in place for a second 34GWh facility, which is expected to be operational by 2027.
Industry analysts estimate that Lotte Energy could generate annual revenues of 100 to 300 billion won from its supply agreement with SPE, depending on the plant’s capacity utilization. At a maximum capacity of 33 GWh, the plant may require up to 19,800 tons of copper foil per year.
This agreement is expected to have a positive impact on Lotte Energy’s financial performance, which has been challenged by the recent market slowdown in the electric vehicle sector. In a strategic move to further capitalize on US incentives, Lotte Energy is seeking approval to build its own copper foil manufacturing facility in Delaware.
The partnership underscores the growing importance of battery material suppliers in the expanding electric vehicle and energy storage markets. It also reflects ongoing efforts to establish localized battery supply chains within North America, in line with evolving U.S. policy directives.
Source: The Korea Economic Daily
