SKC makes an early decision on investment for the expansion of SK nexilis factor No.6

• Securing 9,000 tons in production capacity through investment of KRW 120 billion ∙∙∙ planning to increase the capacity to 52,000 tons by 2022

• Considering additional expansion as part of the global expansion plan∙∙∙ to make a prompt decision to strengthen its status as the world’s No.1 copper foil producer

SK nexilis, a wholly-owned affiliate of SKC, has decided early on the investment for the expansion of its copper foil factory No.6. It is the second major decision made after the one made on the expansion investment of No.6 factor made in March after it became an affiliate of SKC. SK nexilis plans to strengthen its status as the world’s No.1 copper foil producer through rapid additional investment for factory expansion.

On June 1, SK nexilis signed an agreement with Jeongeup-si, Jeollabuk-do on investment for the expansion of the factory of copper foil, which is a core cathode material for EV batteries. It is to commence the work for its No.6 factory with annual production capacity of 9,000 tons in Jeongeup in August and an investment of 120 billion won. The work is scheduled for completion in 1Q of 2022. With the operation of the No. 6 factory, its copper foil production capacity will be increased to 52,000 tons a year.

The investment decision will occupy the copper foil market ahead of other competitors. The market is growing rapidly along with the EV battery market. According to a market survey carried out by SNE, the EV battery market where copper foil is used is expected to grow at the rate of 40% a year by 2025.

In particular, the demand for copper foil with the thickness of 6㎛ or less that is produced by SK nexilis is expected to grow even more rapidly. Ultrathin copper foil is more desirable for the production of high-capacity, lightweight batteries, which are required to boost EVs’ range. The use of ultrathin copper foil makes it possible to contain a lot of active materials in the battery, which means higher efficiency. SK nexilis owns the technical prowess for the mass production of the world’s thinnest (4㎛) copper foil with 1.4 m wide and 30 km long (the world’s longest unit of copper foil).

SK nexilis has decided to expand its production capacity rapidly considering the current supply shortage and its technological prowess over competitors. The company is equipped with the production capacity of 34,000 tons a year with the completion of the No.4 factory early this year. It set up a plan for expansion of the No.5 factory in March this year and started the work for a factory with the capacity of 9,000 tons, expecting to complete it by 3Q of 2021. With the addition of the No.6 factory, its combined production capacity will increase to more than 50,000 tons a year.

SK nexilis is considering the expansion of factories worldwide, expecting that it will be able to respond to customer businesses’ demand more rapidly if it has factories in the United States, Europe, and Asia, where its battery customer businesses are located. It is in an advantageous position because it owns sites in the said parts of the world.

Commenting on the matter, an SK nexilis official said, “Our announcement of the plan for additional expansion of the factory in only three months points to our confidence as a business that enjoys superior technological prowess. We will rapidly fix the expansion plan, including the plan for building factories outside the country to further secure our position as the world’s No.1 copper foil manufacturer.

[Reference photos]

[A view of SK nexilis’s factory in Jeongeup, which will incorporate the No.6 factory]

[A view of SK nexilis’s factory in Jeongeup, which will incorporate the No.6 factory]

[A view of SK nexilis’s factory in Jeongeup, which will incorporate the No.6 factory]

[The CI of SK nexilis CI, which takes pride in being the world’s No.1 copper foil manufacturer]