Global makers of battery materials work together for further expansion

SK nexilis’s copper foil [Courtesy of SK nexilis]

The battery and automotive industries worldwide are increasingly collaborating on essential battery materials because producing materials such as anodes, cathodes, electrolytes, and separators, requires sourcing.

A recent partnership between SKC Corp. and Toyota Tsusho Corp. aims to establish a system for a long-term supply of high-quality copper foil to North America, the world’s largest electric vehicle (EV) market. Copper foil is a crucial component for energy storage systems in EVs.

SK nexilis, a wholly-owned subsidiary of South Korea’s SKC, on Monday, signed a business agreement with Toyota Tsusho, a trading arm of Toyota Group, to consider creating a joint venture for the production and supply of copper foil in the North American market. The collaboration aims to manufacture high-quality copper foil products to meet the demands of potential customers in North America, where battery production is expected to surge from 2025.

North America’s copper foil production is limited to less than 1,000 tons per year, leading to an expected supply shortage as demand grows.

Toyota Tsusho is also involved in building a battery manufacturing plant, Toyota Battery Manufacturing, North Carolina (TBMNC), with a significant production capacity of up t. Toyota is responsible for supplying all materials for the plant, and they have signedo 40 GWh, slated to start actual battery production in 2025 a business agreement with SK nexilis as part of the construction project.

The recent agreement is set to boost SK nexilis’ global expansion further. The company already has operations in Malaysia and Poland, with plans to secure potential long-term customers in North America. Its goal is to establish a global production system capable of producing 250,000 tons of copper foil per year, including facilities in North America.

Collaboration among manufacturers of battery materials has been evident since last year, as seen with LG Chem Ltd. and Japan’s Toray Industries Inc, investing over 1 trillion won ($781 million) in a battery separator joint venture in Hungary. Separators are in high demand as they enhance battery stability by separating the cathodes and anodes. The joint venture plans to produce 800 million square meters of separators annually by 2028, supplying LG Energy Solutions’ Polish plant and other European battery companies. Commercial operations are expected to begin in the second half of this year.

Battery materials companies frequently form joint ventures with automakers, as seen with POSCO Future M and General Motors Co. They have signed a definitive agreement to establish a North American cathode material joint venture named Ultium CAM in Canada. As part of the first phase in the agreement, they have been constructing a high-nickel anode production plant with a capacity of 30,000 tons per year in Bécancour, Quebec.

Eco Pro Co. is also entering into a joint venture with SK on from South Korea and Chinese precursor producer GEM Co. Their collaboration aims to build a precursor plant with a production capacity of 50,000 tons per year in Saemangeum, South Korea. The project requires an investment of 1.2 trillion won.

LG Chem has plans to build a precursor plant in Saemangeum in partnership with China’s Huayou Cobalt Co. Their initial production target is set at 50,000 tons per year by 2026, with the intention to expand it to 100,000 tons per year through further expansions.