Nord Co., Ltd. signed a contract for lithium electric copper foil products to be supplied from January 1, 2022.

SMM Feb. 25: Nuode announced that Huizhou United Copper foil Electronic Materials Co., Ltd., the company's wholly owned grandson, signed a pricing contract for the production of lithium copper foil products with a large overseas car company. The contract stipulates that from January 1, 2022, Nord and its grandson will supply copper foil products to the cooperative customers and their licensees.

The contract stipulates that in 2022, Nord and its wholly-owned grandchildren will guarantee to the cooperative customers that the total supply of copper foil products will not be less than 6930 tons. After January 1, 2023, it is necessary to ensure that the supply of products is not less than 1515 tons per month. The actual purchase quantity shall be subject to the purchase order issued by the cooperative customer and its authorized party, and the sales price shall be carried out according to the price stipulated in the contract.

Referring to the impact of the contract on the company, Nord said that this contract will be performed from 2022 and revenue will be recognized in the relevant years, and that if this contract is fully implemented, it will have a positive impact on the company's operating results from 2022 onwards. The specific amount and time of impact will be determined according to the implementation of this contract.

Copper foil as an important material for lithium battery manufacturing, Ningde era, Yiwei Lithium Energy, Honeycomb Energy, Guoxuan Hi-Tech and other mainstream manufacturers are taking active action, either through joint ventures to build factories, or through shareholding and other ways to strengthen binding.

Some industry insiders said, "due to the greater competition in the new energy battery industry, downstream enterprises have a certain sense of crisis in the stable supply of materials, so most downstream enterprises hope to cooperate and joint ventures with copper foil enterprises."

Soochow Securities Research and report estimates that the global demand for lithium copper foil industry will grow to 650000 tons in 2022, and the supply will remain in short supply. From the supply side, new capacity in the industry as a whole is limited, capacity utilization is expected to remain high in 2022, and 4.5 μ m and 6 μ m links continue to be in short supply.