November 26, 2024

• 

Posco’s headquarters in Gangnam-gu, Seoul. (Yonhap)

Posco International announced Wednesday that the company will provide 6 trillion won ($4.4 billion) worth of raw materials for Lotte Energy Materials’ high-end copper foil production.

Posco International said the company and Lotte Energy Materials signed a memorandum of understanding at Signiel Seoul on Wednesday.

Under the agreement, Posco International will supply around 600,000 tons of raw materials to Lotte Energy Materials through 2033.

The two companies have also established a joint body consisting of executive members and employees to increase cooperation on raw materials supply.

Posco International said the company will leverage its global supply chain to support Lotte Energy Materials’ future operation of manufacturing plants, which the latter plans to build in overseas countries, including Malaysia, Spain and the US.

Copper foil is a key secondary battery material. It serves as a pathway for the electric current and is the source of the heat generated by a battery.

Posco International expected the copper foil market to grow rapidly in the next few years. According to market research firm SNE Research, the global market for copper foil is expected to reach around 10 trillion won from 3.5 trillion won in 2021.

Posco International added the company also plans to increase investment in its business that supplies materials to copper foil manufacturers.

“Posco International plans to invest in copper foil materials businesses here and abroad to establish a value chain encompassing both supply and processing of raw materials used in copper foil production," the company said.

By Shim Woo-hyun (ws@heraldcorp.com)