SK nexilis goes global with copper foil production plant in Malaysia

SK nexilis’ first copper foil factory in Malaysia. [Courtesy of SKC]

SK nexilis Co., a South Korean copper foil manufacturer, is accelerating its global push with its copper foil production facility in Malaysia that recently began commercial operations.

“Our plant in Malaysia has a greater cost edge compared with any global copper foil manufacturer, even Chinese rivals,” Shin Dong-hwan, head of the plant told Maeil Business Newspaper that toured the site last week.

Copper foil, or thin copper material, is used as the current collector of the anode, one of the key components of the lithium-ion battery.

The Malaysia plant is SK nexilis’ first overseas production facility.

The company beefed up its copper foil production capacity by building an overseas plant in Malaysia. The plant began operation on October 23, and the construction of a second plant is scheduled to be complete by the end of the first quarter in 2024.

When Maeil Business Newspaper visited the facility, a towering titanium drum, measuring 1.5 to 2 times the height of an average adult, whirled like a water wheel within a bath of molten copper, yielding a lustrous copper foil.

The copper film was astonishingly thin, merely a micrometer in thickness, and emerged flawlessly smooth and wrinkle-free. The manufacturing process employed the roll-to-roll technique, swiftly converting tens of kilometers of material into neat rolls as soon as it was produced.

Each roll of copper foil, which could weigh up to 7 tons, was subsequently transported to an automated logistics facility for temporary storage before its journey for slitting.

In the slitting stage, the copper foil was cut and examined to ensure uniform thickness. Once all quality checks were successfully completed, the carefully packaged copper foil was ready for delivery to the awaiting customer.

The ability to produce thinner copper foil is essential in copper film manufacturing. A thinner copper foil leads to higher energy density of the battery, which means higher battery capacity.

A longer and wider copper foil requires less energy for foil replacement, helping battery manufacturers improve production efficiency.

With the largest market share in the global copper film market last year, SK nexilis affirmed its confidence in keeping the leading position by tapping into the exceptional cost competitiveness of its Malaysian manufacturing facility.

The power expenses at the Malaysian plant are less than half of what is incurred in Korea, and they stand at a mere 70 percent of those found in other Southeast Asian nations.

Labor costs in Malaysia also are only one-third of those in Korea.

“Cost reductions are necessary for survival as there are more than 60 copper foil manufacturers competing worldwide,” Shin said. “The Malaysian facility is now the largest individual copper foil plant globally, following the recent expansion in production capacity to 57,000 tons per year from the initial expected 50,000 tons.”