POSCO, Lotte to cooperate in copper foil business
POSCO International Vice Chairman Jeong Tak, third from left, Lotte Chemical Vice Chairman Kim Kyo-hyun, fourth from left, and Kim Yeon-seop, fifth from left, the CEO of Lotte Energy Materials, a subsidiary of Lotte Chemical, pose with other POSCO and Lotte executives at Lotte World Tower in Seoul, Wednesday, during a memorandum of understanding signing ceremony, regarding the long-term supply of copper foil materials. Courtesy of Lotte Energy Materials
POSCO International and Lotte Energy Materials signed a memorandum of understanding, Wednesday, regarding the former’s supply of 600,000 tons of copper to the latter over the next 10 years. The copper will be used to make foil that covers anode materials in rechargeable batteries.
Their partnership is expected to allow POSCO International to generate an additional 6 trillion won ($4.4 billion) in revenue.
The trading firm is the largest supplier of copper foil materials, as it trades copper with over 80 companies around the world. It will sell mill-berry and granulated copper scrap to the copper foil manufacturing unit of Lotte Group.
The use of copper scrap is intended to attract overseas clients prioritizing the environment.
Lotte Energy Materials expects the long-term supply of materials to enable it to expand its presence in Malaysia, Spain and the U.S. through the production of high-end copper foil.
“The agreement will be a great help for stable supply of high-quality copper foil to our major clients,” Lotte Energy Materials CEO Kim Yeon-seop said. “Based on the close partnership with POSCO International, we will be the global No. 1 in the high-end copper foil market.”
A POSCO International official said the company plans to keep investing in the copper foil sector to expand its value chain from procurement to processing of ingredients.
The two companies also formed a council consisting of their executives and working-level employees. POSCO International is set to give advice to Lotte Energy Materials, based on its experience in building global business networks.