Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
SK, Lotte delay building copper foil plants in Europe amid EV glut
An illustration of Lotte Energy Materials' copper foil factory to be built in Catalonia, Spain / Courtesy of Lotte Energy Materials
By Park Jae-hyuk
Samsung considers constructing another battery factory in Poland
Copper foil producers are following the battery industry's trend of scaling back investments due to a slowdown in global demand for electric vehicles (EVs).
Lotte Energy Materials (LEM) said, Wednesday, that the completion of its Spanish factory has been delayed until June 2027 from late 2025, considering European battery makers are postponing the expansion of their production facilities.
The world’s fourth-largest copper foil maker has reduced its planned investment in the Spanish project for this year from 180 billion won ($130 million) to 25 billion won.
Just a year before, the company announced that it would invest nearly 560 billion won by 2025 in the construction of its Spanish factory that will have an annual production capacity of 30,000 tons. It also expressed confidence in being the “first vendor” for European clients, based on its high-end products made with its differentiated technologies.
However, the lingering slowdown in the European EV battery market has put the brakes on the Korean firm’s ambitious plan.
“We will also be flexible about investments in our North American project, considering possible changes in U.S. government policies after the country’s presidential election,” LEM CEO Kim Yeon-seop said during a conference call regarding second-quarter earnings.
“We will be cautious about all investments, but we will not miss a chance to predominate the market.”
SK Nexilis, an SKC subsidiary that holds the largest share in the global copper foil market, also delayed the construction of its Polish factory following its decision late last year to reconsider its investment in the construction of its North American factory.
“We had initially expected the expansion of our second Polish factory to be finished next year, but the slow demand recovery in Europe made us become flexible about the plant’s completion and operation,” SKC Chief Financial Officer Yoo Ji-han said during a conference call on second-quarter earnings last Thursday.
“Due to the growing uncertainties before the U.S. presidential election, it is not the right time to consider expansion in North America.”
SK Nexilis even suffered a 37.4 billion won operating loss during the second quarter, unlike LEM, which posted an 8 billion won operating profit.
“A turnaround of our copper foil business, which was initially anticipated to be seen in the fourth quarter, will be delayed to next year,” the SKC CFO said.
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Most battery makers and producers of battery materials here have recently announced plans to reduce their capital expenditures this year to counteract the industry slump.
The only exception is Samsung SDI, which promised to continue its planned investments, including the expansion of facilities at its plant in Hungary.
The battery manufacturing unit of Samsung Group is also reportedly considering the construction of another factory in Poland. However, the company explained that it has yet to decide on the size, timing or specific region for this new investment.