Acquired 53.3% in shares amounting to 2.7 trillion KRW
Completed value chain for key material for secondary batteries
To build factories in different locations including USA and Malaysia by 2027
To ta
Lotte Chemical acquired Iljin Materials for 2.7 trillion KRW, establishing a value chain for key materials for secondary batteries.
Lotte Chemical’s American battery materials holding company, Lotte Battery Materials USA, announced that they had signed a stock purchase contract with Iljin Materials, the number 1 producer of copper foil in Korea, on the 11th. They are taking over 53.3% of shares from Iljin Materials for 2.7 trillion KRW. After completing the corporate merger registration in Korea and overseas, the takeover will be complete.
Lotte Battery Materials USA is taking the lead in acquisitions to take over the American and European eco-friendly EV battery material market.
Iljin Materials manages manufacturing bases in Korea and Malaysia. In 2010, Iljin Materials made the leap from a printed circuit board (PCB) material company to a secondary battery material company and rose to become a key subsidiary of Iljin Group. Ranked as 2nd in the world, it is capable of manufacturing 60,000 tons of copper foil. In the future, they plan to construct factories in Malaysia, Spain, and the US, with a scale of production reaching 230,000 tons by 2027.
Iljin Materials recorded 688.8 billion KRW in consolidated sales last year, and 69.9 billion KRW in operating profit. In the 1st quarter of this year, they recorded 200.1 billion KRW in sales, and 21.6 billion KRW in operating profit.
Lotte Group has been actively investing in the secondary battery materials business recently. Lotte Chemical, Lotte Fine Chemical, and Lotte Aluminium is directly and indirectly investing and producing the 4 main materials of batteries (cathode, anode, electrolyte, separator). Lotte Chemical manufactures separators (PE) and is constructing a factory for organic electrolyte solvents (EC, DMC) for batteries. Lotte Aluminium and Lotte Fine Chemical are each operating business for anode foil and copper foil (Invested in shares of Solus Advanced Materials).
Gyohyun Kim, the CEO of Lotte Chemical, said that, “Iljin Materials succeeded in being the first in the world to develop ultra-high strength copper foil, and possesses outstanding technical capabilities,” and went on to reveal that, “Lotte Group’s Chemical Division will improve the business capabilities of the battery material business through its choices and focus. It will raise the value of the company through organic cooperation between its subsidiaries.”
Reporter Sora Park srpark@etnews.com, Reporter Taewoong Ryu bigheroryu@etnews.com