Analysis agency: copper foil plating projects surge to meet expected demand for electric vehicles

According to data from a market consulting firm, wave after wave of new copper foil factory projects were announced in the first half of 2021, and existing factories are also expanding in the second and third stages. Most of the goals of these projects are to make copper foil for lithium-ion batteries to meet the needs of electric vehicles.

Copper foil is the most commonly used anode collector in lithium-ion batteries; it not only allows the current to flow, but also dissipates the heat generated by the battery. The thinner the aluminum foil, the more active materials can be loaded into the electrode, which reduces the weight of the battery, increases the capacity of the battery, and minimizes manufacturing costs and environmental impact.

To this end, cutting-edge process control technology and highly competitive production facilities are needed.

According to SK Nexilis, a leading copper foil maker, it takes 4 grams of copper foil to make a smartphone and 35 to 40 kilograms of copper foil for large and medium-sized electric car batteries, which is why demand for copper foil has risen sharply recently.

From January to May 2021, more than 12 new projects and expansions have been reported worldwide. The new capacity totaled 5.6 million tons, equivalent to an increase of 67 per cent in the nameplate industry at the end of 2020 (8.3 million tons). This new capacity will be put into production between 2022 and 2025. A large foil plant (500000 tons / year) requires 18-20 months of construction and commission.

South Korea's SK Nexilis has accelerated the completion of its fifth and sixth domestic plants in Jeongeup, which will be completed in the third and fourth quarters of 2021 to cope with supply shortages in the Asian market. The company also announced the construction of three plants with a capacity of 50, 000 tons in Malaysia, Poland and the United States, with the goal of becoming the world's leading copper foil manufacturer, with a capacity of 250000 tons per year by 2025.

Also striking are its South Korean rivals Iljin Materials and Solus Advanced Materials. Iljin is investing in new plants in Malaysia and Hungary, while Solus is launching new capacity in Hungary and the United States (in partnership with Toyota, a scrap supplier).

There are also a number of new factories and expansion projects under way in China and Taiwan, operated by a number of domestic companies, aimed at serving the booming local market. The new plants and expansions highlight new uses for growing demand for copper, but they also highlight increased competition for high-grade scrap in the future.