Korean Copper Foil Makers Ride De-China Wave, ESS Boom

Korean copper foil manufacturers have seen a significant rebound in their performance indicators due to increasing demand from battery makers, led by North America's de-China movement and expanding energy storage system (ESS) orders.

The industry has been witnessing a shift as global battery makers reach out to Korean copper foil companies for supply inquiries. This trend is driven by the restructuring of the global battery supply chain, with the United States tightening regulations that bar companies from claiming the Advanced Manufacturing Production Credit if more than 40% of battery costs are sourced from Prohibited Foreign Entities like China.

Lotte Energy Materials reported a 77% average plant utilization rate in Q2, driven by increased sales of battery foil for EVs and ESS, as well as soaring demand for circuit foil used in AI servers and network equipment. Solus Advanced Materials also saw its Q2 battery foil revenue increase by 63% year-over-year to ₩75 billion (approximately $52.9 million), with shipments rising 40% quarter-over-quarter.

The industry is anticipating further margin improvement in the second half from rising copper foil selling prices, as China's industrial restructuring efforts and U.S. tariff barriers could ease the accumulated oversupply centered on Chinese manufacturers. An industry official stated that 'the benefits are spreading to Korean copper foil manufacturers' as demand grows rapidly, particularly from AI data centers.