SKC-Toyota Tsusho joint venture to target EV market in U.S.

Industry

Published: 31 Jul. 2023, 16:56

SKC-Toyota Tsusho joint venture to target EV market in U.S.

SKC CEO Park Won-cheol, right, poses for a photo with Ichiro Kashitani, president and CEO of Toyota Tsusho, during a signing ceremony for their partnership on copper foil manufacturing in the United States in Nagoya, Japan, on July 28. [SKC]

SKC will form a joint venture with Japan's Toyota Tsusho to produce battery materials in North America, aiming to dive into the world's most burgeoning electric vehicle market.

SK Nexilis, SKC's copper foil-making subsidiary, said Monday the two companies signed a memorandum of understanding to build a copper coil manufacturing facility and work together on long-term supply deals.

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 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).

Further details on the partnership will be announced later.

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

SK Nexilis aims to boost the 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]