Lotte Energy Materials is selling a 90% stake in its unit Lotte Ecowall and will focus on strengthening competitiveness in its copper foil business. It signed a share purchase agreement with Realsun Private Equity, it said on Thursday. The company plans to use the proceeds to invest in four high value-added products, including circuit foil for AI data centres and ultra-thin foil for semiconductors.

Lotte Energy Materials will invest about 50 billion won to expand circuit foil production capacity for AI data centres. The investment will target facility expansion at its Iksan plant in North Jeolla Province, the only circuit foil production base in South Korea. The company aims to raise annual maximum circuit foil capacity to 16,000 tons by 2027. It said the move is a pre-emptive investment aimed at both earnings recovery and market expansion.