SKC teams up with Toyota Tsusho for copper foil supply in North America

MOU signing ceremony between SK nexilis Co. and Toyota Tsusho Corp. [Courtesy of SKC]

SKC Co., the chemical unit of South Korea’s SK Group, has partnered with Japan’s Toyota Tsusho Corp. to establish a system for long-term high-quality copper foil supply in North America, the world’s largest electric vehicle (EV) market.

SK nexilis Co., the copper foil arm under SKC, on Monday announced the signing of a memorandum of understanding with Toyota Tsusho to explore the establishment of a joint venture company in Nagoya, Aichi Prefecture, Japan.

SK nexilis and Toyota Tsusho plan to jointly invest in the establishment of a copper foil production facility in North America, catering to the demands of potential customers in the region for superior-quality copper foil products. The collaboration aims to ensure a stable and long-term supply amid the projected explosive growth in battery production in North America from 2025 onwards, as the local copper foil production capacity is forecasted to be insufficient even to meet a thousand tons annually.

The agreement marks a significant milestone in SK nexilis’ global expansion strategy. Following the commencement of commercial operations in Malaysia earlier this year and the upcoming completion of the facility in Poland next year, securing potential customers with substantial demand in the North American market will provide a solid foundation for their future large-scale investments. The company’s goal is to establish a global production system capable of producing 250,000 tons annually, encompassing the North American region.

Both companies also committed to cooperate in securing key raw materials for production. Toyota Tsusho engages in various businesses related to key battery materials, including lithium in Argentina. As such, it is expected that the supply of copper foil raw materials required for the North American production facility will be efficiently met. The two companies also plan to collaborate in securing additional customers to further enhance their partnership.