Lithium Battery Copper Foil Boom: Race for Ultra-Thin Tech & Capacity Expansion

After a prolonged period of market stagnation and low prices, the lithium battery copper foil sector has begun a strong recovery. Since the beginning of this year, downstream battery producers have significantly increased their procurement orders for copper foil materials. Entering Q4, copper foil enterprises have entered a period of order boom, with many top-tier companies recently securing massive orders.

On December 1, Nuode announced that its wholly-owned subsidiary, Baijiada, signed a copper foil supply agreement with CALB for 2026-2028, with a total supply of 373,000 mt. Based on current mainstream average prices, the order value is approximately 40 billion yuan. The annual supply volumes for the three years are 58,000 mt, 130,000 mt, and 185,000 mt, accounting for 41%, 93%, and 132% of Nuode's existing annual capacity of 140,000 mt, respectively.

One month ago, Jiayuan Technology announced that it signed a framework agreement with CATL, under which CATL plans to procure battery anode current collector materials (including copper foil, etc.) from Jiayuan Technology. From 2026 to 2028, Jiayuan Technology will supply 157,000 mt, 204,000 mt, and 265,000 mt of new-type battery anode current collector materials to CATL annually, with a total supply of 626,000 mt. Based on current copper foil prices, the order value is as high as 66 billion yuan.

It can be seen that just these two copper foil orders amount to nearly 1 million mt, with a value exceeding 100 billion yuan. Industry analysts point out that this wave of orders for copper foil enterprises is a microcosm of the recovery in the new energy industry chain, reflecting downstream battery companies' optimism about future market performance. By locking in key material supplies in advance to meet production needs, they aim to secure sufficient capacity and gain a market advantage.

Industry Recovery and Rebound
"From the perspective of the anode current collector copper foil industry, from Q4 2023 to last year, the entire industry was almost in a loss-making state. This year, the industry began to recover, and currently, the entire lithium battery copper foil industry is experiencing an order explosion," stated Chen Yubi, General Manager of Nuode, at an industry forum. He expressed that in the coming years, there will be many surprises in copper foil technology iteration, and the industry is expected to usher in a spring of development. A concentrated surge in copper foil orders primarily benefited from robust growth in downstream lithium battery demand, particularly the rapid development of the new energy vehicle and energy storage sectors.

In the first three quarters of this year, global NEV sales reached 15.71 million units, up 26% YoY, accounting for 22.3% of total auto sales. According to data from South Korea's SNE Research, global power battery installations in the first three quarters reached 811.7 GWh, a significant increase of 34.7% compared to 602 GWh in the same period last year. The energy storage market grew even faster, with global ESS battery shipments reaching 428 GWh in the first three quarters of 2025, surging 90.7% YoY.

As the core material for the anode current collector in lithium batteries, the performance of copper foil directly impacts battery energy density, safety, and cost. As battery technology continuously advances towards higher energy density, market demand is increasingly growing for thinner, higher tensile strength, and more consistent lithium battery copper foil. Industry institutions predict that the global demand for copper foil used in lithium batteries in 2025 is expected to reach approximately 1.3 million mt.

From a market application perspective, the mainstream product for lithium battery copper foil has rapidly transitioned from 8μm to 6μm, with ultra-thin foils of 4.5μm and below accelerating their penetration; thin copper foil has become standard for high-end batteries. Taking CATL's Qilin battery as an example, using 6μm copper foil can increase battery energy density by 5%-10%, while the application of 4.5μm copper foil can further enhance energy density, helping to boost EV driving range to over 1,000 kilometers.

As copper foil rapidly iterates towards thinner specifications, this places extremely high requirement on the technology and yield rates of copper foil producers, consequently allowing technologically leading top-tier enterprises to secure more orders. Industry analysts point out that ultra-thin copper foil requires cathode roller precision to be controlled within ±0.5μm, tensile strength ≥400 MPa, and must pass a continuous 12-hour uninterrupted production test. Currently, only a few top-tier enterprises such as Nuode, Jiayuan Technology, and Defu Technology can achieve mass production of 4.5μm copper foil.

Capacity + Technology Competition

The massive surge in orders far exceeded industry expectations, catching even leading copper foil producers somewhat "off guard." The scale of orders has already surpassed the current peak capacity of enterprises. To meet long-term order demands, copper foil producers are generally accelerating capacity expansion.

It is understood that Nuode currently has an annual copper foil capacity of 140,000 mt and has planned to expand its global total capacity to 300,000 mt/year by 2030, covering the lithium battery and high-end electronic circuit copper foil sectors. As of now, Jiayuan Technology possesses an annual copper cathode foil capacity of over 130,000 mt, with a medium and long-term plan for a total capacity of 250,000 mt, covering a full range of products including EV, ESS, solid-state, and electronic copper foils.

Defu Technology disclosed that its current total domestic annual capacity is 175,000 mt, comprising an annual lithium battery copper foil capacity of 125,000 mt and an annual electronic circuit copper foil capacity of 50,000 mt. The production lines for various series of electronic circuit copper foil products can be fully and flexibly switched. In July this year, Defu Technology completed the acquisition of a Luxembourg copper foil company, elevating its global total annual copper cathode foil capacity to 191,000 mt.

On the other hand, copper foil producers are also accelerating their technological layout for high -end products.

Nuode has achieved stable mass production of 3μm ultra-thin copper foil, which can save approximately 30% copper usage compared to traditional 5μm products. Jiayuan Technology stated that it has made breakthroughs in mass production for multiple products in the ultra-thin, high-strength copper foil field, with 4.5μm and 4μm products achieving stable mass production, 3.5μm ultra-thin copper foil entering the small-batch supply stage, and possessing mass production capability for 3μm copper foil.

Copper foil for solid-state/semi-solid-state batteries is also a key focus of technological competition. Tongguan Copper Foil indicated that the company has developed lithium-ion battery copper foils with various specifications and strengths, including medium and high tensile strength, as well as high-end lithium battery copper foil products such as mesh three-dimensional structure copper foil, suitable for application in solid-state and semi-solid-state batteries.

According to Defu Technology, the company's lithium battery copper foil applied in semi/all-solid-state batteries reached 140 mt in H1 2025.

The technological innovation in the lithium battery copper foil sector is currently at a critical stage of breakthrough. Industry enterprises are actively exploring pathways to advancement through material innovation, process refinement, and high-end upgrade strategies, aiming to build a sustainable competitive moat. In the coming years, leading enterprises with the capability for large-scale production of ultra-thin copper foil, stable and reliable product performance, and excellent cost control will reap the greatest development dividends.

Please note that this news is sourced from https://mp.weixin.qq.com/s/OYXbO1kwKae0_XG_4bg7jw and translated by SMM.