SK Nexilis signs copper foil deal with German battery maker

SK Nexilis has inked a deal with Germany’s Varta to supply copper foil, a critical battery material in making electric vehicle batteries.

SKC CEO Park Won-cheol speaks during the SKC Tech Day event held in Gwangjin District, eastern Seoul on Nov. 23 last year. [SKC]

SK Nexilis has inked a deal with Germany’s Varta to supply copper foil, a critical battery material in making electric vehicle batteries.

Under the deal, SK Nexilis will be an exclusive supplier of the copper foil to the European battery maker, the Korean company said.

The size of the deal has not been confirmed.

Copper foil is a core component in making anodes, which are used in lithium-ion batteries for EVs. Copper foil functions as the negative pole, which lithium ions flow toward from the positive pole as a battery releases electricity. Around 35 to 40 kilograms (77 to 88 pounds) of copper foil is required to make an EV.

SK Nexilis, SKC's copper foil-making subsidiary, signed a 1.4-trillion-won ($1.1 billion) supply deal with Northvolt in February.

It has its own technology to produce the world's thinnest copper foil — about one-thirtieth the thickness of a human hair — alongside the widest at 1.4 meters (4.5 feet) and the longest at up to 77 kilometers (48 miles).

SK Nexilis is the world's largest copper foil producer, with a capacity of around 52,000 tons a year, according to SNE Research.

The company aims to boost that number to 250,000 tons by 2025. Its major customers include LG Energy Solution, Samsung SDI, SK On, Panasonic and CATL.

BY SARAH CHEA [chea.sarah@joongang.co.kr]