LOTTE Aluminium Materials USA LLC announced this week a new US$238.7 million project in Kentucky to construct an aluminium foil production plant for use in EV batteries.
Per the state governor’s office, LOTTE Aluminium is partnering with LOTTE Chemical on the project, which is expected to have a nameplate capacity of 36 thousand short tons per annum. The new plant will produce ultra-thin aluminium cathode foil, which is one of the four main components of lithium-ion EV batteries.
A portion of the plant’s cost will come from the state itself. Kentucky’s Product Development Initiative (PDI) will contribute US$500,000 in infrastructure costs at the site, which is expected to begin production in 2025. The project will also receive up to US$1 million in tax incentives from the Kentucky Enterprise Initiative Act (KEIA) which will recoup LOTTE for sales and use taxes on construction costs, building fixtures, equipment used in research and development, and electronic processing.
Kentucky governor Andy Beshear said in a press release that the latest project is one of several in the state related to electric vehicles.
“I want to welcome LOTTE to Kentucky as we continue to see significant investment from EV-related businesses across the state. Further growth of this sector will require attraction of a broad range of suppliers, and this announcement by LOTTE signifies just that. We are building an ecosystem that will last for generations to come, and I am happy to announce this company will be a very important part of that vision.”
Kim Gyo Hyun, president and CEO of LOTTE Chemical said the project is a response to growing customer demand.
“We will do our best to develop and support technology so that we can stably produce high-quality and high-efficiency cathode foils to respond to customers one step at a time.”
Company officials say the demand for ultra-thin aluminium foil will increase by almost one-third each year through the end of the decade.