SK Nexilis, an investor in SKC's copper foil business, announced on the 26th that it has obtained 195 billion won in subsidies from the Polish government as part of the European Union's (EU) Green Deal policy, known as the Temporary Crisis and Transition Framework (TCTF).
With this, SK Nexilis has become the first South Korean battery materials corporation to receive EU TCTF subsidies and the corporation to receive the largest cash subsidies based on single investment from the Polish government. SK Nexilis and the Polish government agreed to cooperate to strengthen their mid-to-long-term partnership in areas such as industry-academic collaboration and research and development based on the factory currently under construction in Stalowa Wola, eastern Poland.
Earlier, the European Union introduced the Temporary Crisis and Transition Framework (TCTF) in March of last year, easing regulations on the provision of subsidies to corporations promoting decarbonization in areas such as electric vehicles and batteries. Major European countries, including Italy, Spain, and Germany, have already been providing subsidies to corporations engaged in production activities within their own countries.
With the secured cash subsidies, SK Nexilis's local factory operation strategy is expected to improve further. SK Nexilis is nearing the completion of its copper foil factory in Stalowa Wola, Poland, and plans to gradually establish its supply chain through processes such as customer certification.
An SKC official noted, 'This subsidy acquisition will serve as a stepping stone to establish an industry-academic-research cooperation ecosystem with the Polish government,' and added, 'As we gain momentum in strengthening our financial soundness, we will respond to the market by immediately operating the factory in line with the recovery of demand in the European market.'