Lotte Energy Materials has converted its Iksan plant in South Korea into a production base for circuit foil used in AI. It held a 2026 first-half global strategy meeting at the Iksan plant over two days from Jan. 13 to 14 and announced the move.

On the first day, the meeting discussed ways for the Iksan plant to achieve a global top-tier position. The Iksan plant, the only circuit foil production base in South Korea, will respond to rapidly rising demand from big tech companies for high value-added circuit foil for AI. It will also complete ongoing customer approvals early and stabilise quality. It plans to expand equipment capacity to secure customer trust.

The Iksan plant will convert all battery foil line capacity of about 20,000 tons to circuit foil lines. After the conversion, sales volumes of high value-added circuit foil for AI will rise in earnest once product approvals are completed by domestic and overseas customers. The company expects this year to mark the first year of a full-scale push in sales of circuit foil for AI.

Lotte Energy Materials last year launched its Hybrid High-End product brand, HiSTEP, the first in South Korea's copper foil industry. It is holding technology exchange meetings with OEMs and battery makers and proposing tailored technologies by application, including high value-added circuit foil for AI and battery foil for ESS.

Chief Executive Kim Yeon-seop said, "Beyond short-term performance improvement, this must be a year to lay the groundwork for a renewed leap forward through a structural transformation of our business."

The meeting also covered measures to secure cost competitiveness and equipment integrity at its Malaysia plant. The Malaysia plant reduced inventory and scrap foil through the RISE 1000 project launched last year. This improved yield and efficiency. Starting this year, it plans to secure world-class cost competitiveness through second-phase innovation activities.

Malaysia Plants 5 and 6 produce high value-added products that are difficult to manufacture, including ultra-thin foil, high-strength foil, thick foil and wide-width foil. The company is preparing to begin full-scale operation of the two plants, completed in 2024. It aims for zero customer complaints through advanced equipment and skilled technology. It also plans to raise plant productivity to a world-class level to strengthen quality competitiveness.

Kim said, "We will strongly push innovation across the overall operating system by applying data-based AI technology centered on production, quality and development sites." He added, "We will expand the share and applications of new customers by more than 20 percent to minimise sales risks stemming from EV market stagnation and will concentrate all of the company's capabilities on strengthening preemptive marketing to get ahead of the market when demand recovers and on expanding efforts to discover new markets."