In the arena of copper foil manufacturing, pivotal for the electric vehicle (EV) battery segment, a corporate tug of war is intensifying. Leading the Korean charge in this industry, anticipated to mushroom into a 10 trillion won (US$7.4 billion) market by 2025, are two local titans: SK Nexilis and Lotte Energy Materials. Amid the global EV euphoria, these corporations are hustling for supremacy, snatching up sizeable contracts, and aggressively upscaling production.
SK Nexilis: Korea’s Front-runner in Copper Foil Dominion
SK Nexilis, a prominent figure in the Korean market for copper foil essential for secondary batteries, has notched significant victories recently. It clinched a deal worth 1.4 trillion won (US$1.04 billion) with Sweden’s Northvolt, marking a significant milestone in its journey to top the industry charts. The wins didn’t stop there, with additional triumphs including contracts with industry heavyweights such as Toyota Tsusho, Germany’s Varta, and Japan’s Invision AESC.
These deals are not just a boon for SK Nexilis but also highlight the strategic clout of Korean industry players in the global EV supply chain. Furthermore, Varta’s initiative, which aligns with its battery production expansion, reflects a growing preference among international firms for Korean expertise and supply consistency.
Expanding Korean Footprint on Global Soil
Not content with dominating the home turf, SK Nexilis is flexing its muscles internationally, inaugurating its first overseas production facility in Malaysia. This move marks a significant step in bolstering Korea’s presence in global production landscapes, with more expansion plans in the pipeline targeting regions like Poland and North America.
In a parallel stride, Lotte Energy Materials is investing 560 billion won in a cutting-edge Spanish facility, emphasizing Korean industry’s commitment to carving out a substantial space in the European market. This initiative follows Solus Advanced Materials’ trailblazing efforts, having established a presence in Hungary and Luxembourg.
The Crux of Korea’s EV Ascent: Copper Foil
Copper foil stands as a linchpin in Korea’s EV ascent, integral for battery anodes and a key determinant in the performance of modern EVs. Although it’s just one segment of the battery cost, copper foil’s profitability is tantalizing, promising operating margins that outshine the broader manufacturing sector.
The international clamor for EVs is feeding directly into a voracious demand for high-quality copper foil, a niche where Korean manufacturers are positioned strongly. Industry projections are bullish, with an expected annual market growth north of 40 percent through to 2025, bolstering Korea’s strategic emphasis on this sector.
Korea’s Strategic Play in a Blossoming Market
The global forecast is optimistic, predicting a surge in demand for secondary battery copper foil from 265,000 tons in 2021 to 748,000 tons by 2025. In this high-stakes environment, Korean entities like SK Nexilis and Lotte Energy Materials are not mere spectators. They are active, influential players driving market dynamics, using their growing international contracts and production capacities to solidify Korea’s authoritative stance in this lucrative industry.
