Lotte Energy Materials said on Monday it posted consolidated fourth-quarter sales of 170.9 billion won and an operating loss of 33.8 billion won in 2025. Sales fell 8.3 percent from a year earlier and the operating loss narrowed 15.6 percent.

For the year, it recorded sales of 677.5 billion won and an operating loss of 145.2 billion won. Sales fell 24.9 percent from a year earlier. The operating loss and net loss for the period were 145.2 billion won and 162.3 billion won, respectively, widening the deficit.

It said the deterioration in results stemmed from a slump in downstream industries. As plant utilisation fell and sales volumes continued to drop, the fixed-cost burden of factory operations increased losses.

The company said it will focus this year on expanding its circuit foil business for AI use and pre-empting the high-end battery foil market. To meet demand for high value-added circuit foil for AI, the Iksan plant will be converted 100 percent to circuit foil lines by 2027. It forecast that related sales will grow more than 2.6 times as it begins full-scale supply of AI network circuit foil. For its HVLP4 product for next-generation AI accelerators, it is working with a domestic customer to proceed with supply and plans to supply mass-produced volumes in line with the customer's product launch schedule.

It also said it will leverage its high-end battery foil technology competitiveness. With global copper prices surging and tariff changes forcing battery production to reduce copper weight, products that simultaneously offer ultra-thinness, high strength and high elongation properties are drawing attention. The company said the product has been adopted exclusively for ESS use by a North American joint-venture customer and is set to enter mass production.

It is also speeding up its solid electrolyte business for all-solid-state batteries. The company is operating pilot solid electrolyte facilities with an annual capacity of 70 tons. Based on this, it is discussing ways to expand to a 1 GWh scale in cooperation with global leading all-solid-state battery companies.

Chief Executive Kim Yeon-seop (김연섭) said, "In line with the trend toward building hubs in the value chain for AI substrate materials, the Iksan plant, the only circuit foil plant in Korea, will focus on accelerating the conversion to circuit foil lines, and the Malaysia plant will improve performance by diversifying its portfolio of high-end battery foil products for ESS and mobile use."