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| SK Nexilis workers inspect the quality of copper foil at the company's factory in Jeongeup, North Jeolla Province. Courtesy of SKC |
Copper foil maker seeks to build factories in US, Canada by 2025
By Park Jae-hyuk
JEONGEUP, North Jeolla Province ― Dozens of electroplating machines produce copper foil for electric vehicle (EV) batteries, at a standard width of 14 meters, thickness as little as 4 micrometers and lengths of up to 77 kilometers, at SK Nexilis' fifth production line in the southwestern city of Jeongeup.
Automatic cranes hanging from the ceiling and automated guided vehicles moving on the floor convey six-ton rolls of copper foil precisely to empty shelves. The finished product, a core material for EV batteries, is supplied to LG Energy Solution, Samsung SDI, SK On and other major battery makers around the world.
Offering the first-ever press tour of its new production line opened a year ago, SK Nexilis, which is the world's leading copper foil maker in terms of market share, showed confidence that it will continue to hold the top spot in the global market and widen the gap with its rivals, based on its ability to produce the "thinnest, longest and widest" copper foil.
The wholly owned subsidiary of SKC, a chemical unit of SK Group, is the first company to have succeeded in mass-production of battery foil at a thickness of only 4 micrometers.
"Our rivals cannot produce copper foil at such width and length," SK Nexilis CEO Yi Jae-hong said at Tuesday's press conference at the factory. "There is a significantly wide gap between our company and other copper foil manufacturers."
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| A bird's eye view of SK Nexilis' factory in Jeongeup, North Jeolla Province / Courtesy of SKC |
The press conference was held on the day that rival Lotte Chemical signed a contract to acquire a controlling 53.3 percent stake in Iljin Materials, the world's No. 4 copper foil maker in terms of market share, for 2.7 trillion won ($1.9 billion).
Given that the acquisition deal was signed by Lotte Chemical's U.S. holding company for battery materials, SK Nexilis is expected to face a fierce competition with Lotte Chemical especially in the North American market, where it also plans to build factories within a few years.
SKC CEO Park Won-cheol, however, expects Lotte Chemical to face difficulties in catching up with SK Nexilis, due to the technological gap.
"Lotte Chemical's acquisition of Iljin Materials will help the Korean battery industry enhance its competitiveness, so we open-mindedly welcome its decision," he said.
SK Nexilis also unveiled its expansion plans to overwhelm its rivals in the global market.
In addition to its factories currently under construction in Malaysia and Poland, the company seeks to finish building its manufacturing plants in North America by 2025 to have a combined annual production capacity of 250,000 tons.
According to the copper foil producer, the sites for the new North American plants will be chosen by the end of this year, among four candidate locations in the U.S. and Canada.
In those regions, copper foil for EV batteries have been in high demand lately, due to the U.S. Inflation Reduction Act that forces EV battery makers to use materials supplied in the U.S. or countries that signed free trade agreements with the U.S.
SK Nexilis is even considering building two factories at once, so as to better supply its products to its customers in both the northern and southern parts of the U.S.
"We will take into account each state government's incentives, electricity bills and the number of talented jobseekers, as well as the distance with our customers," the SK Nexilis CEO said.
SKC is looking for promising companies to acquire with the 5 trillion won it earned through the sale of its PET film business in June and financial cooperation with the state-run Korea Development Bank. The parent firm of SK Nexilis has paid keen attention to companies producing materials for batteries and semiconductors.
"Although the market has been stagnant amid the recent economic downturn, we expect an improvement in market condition after next year," the SKC CEO said. "We are preparing for a sizable acquisition deal in the near future."
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