EV revolution sparks momentum in electrodeposited copper foil projects for li-ion batteries, Roskill.
[Roskill] The first half of 2021 has seen a tidal wave of announcements of new electrodeposited copper foil mill projects, as well as second and third phase expansions at existing mills. The majority are targeted at making lithium-ion battery foil to enable the electric vehicle (EV) revolution.In January to May 2021, over a dozen new projects and expansions have been reported globally. This dramatic acceleration in new capacity collectively totals 560kt, equivalent to a 67% increase in the nameplate industry capacity that existed at the end of 2020 (830kt). This new capacity will be brought on stream over the 2022 to 2025 period. Large scale foil mills (50ktpy) take between 18-20 months to construct and commission.
Roskill view
The primary factors determining the siting of new foil capacity include proximity to EV battery making customers, a site suitable for multiple expansion phases, locally available supplies of high-grade copper scrap (the primary raw material), and finally, a cheap and reliable electricity supply (the main manufacturing cost).
Foremost in the list of new mill announcements is the South Korean company SK Nexilis. It has accelerated the completion of its domestic number five and number six plants in Jeongeup for Q3 and Q4 2021 to respond to supply shortages across the Asian market.
It has also announced the building of three 50ktpy capacity mills in Malaysia, Poland, and the United States, as it aims to become the world’s leading copper foil maker, with a capacity of 250ktpy by 2025.
Also prominent are its South Korean rivals Iljin Materials (Iljin) and Solus Advanced Materials (Solus). Iljin is investing in new plants in Malaysia and Hungary, while Solus is rolling out new capacity in Hungary and the United States (in partnership with scrap supplier Toyota Tsusho).
Not surprisingly, there are multiple new plants and expansion projects underway in China and Taiwan, operated by a host of domestic players aimed at serving the booming local market. These new plants and expansions highlight new applications for copper demand growth but also fiercer competition ahead for high grade scrap.
Full details of these electrodeposited foil mill investments are part of the forthcoming 4th edition of Roskill’s Lithium-ion Batteries: Outlook to 2030 report, and the 1st edition of Roskill’s Copper: Outlook to 2031 report.
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Copper: EV revolution sparks momentum in electrodeposited copper foil projects, June 9, 2021
