Solus Advanced Materials, one of Korea's three copper foil manufacturers, is set to sign supply contracts for battery foil with two new customers, including a Chinese battery maker that has entered Europe. As Europe tightened battery rules that include origin requirements, battery companies have come knocking at Solus Advanced Materials, which has a plant in Hungary.
According to the battery industry on the 19th, Solus Advanced Materials plans to sign contracts in the first half of this year with two battery companies to supply battery foil produced at its Hungary plant. A Solus Advanced Materials official said, "We plan to secure additional contracts with a first-half target."
Copper foil is a sheet made by pressing copper thin. Copper foil is divided into battery foil and circuit foil depending on use. Battery foil is short for battery-use copper foil and is used for the anode material of lithium-ion batteries. It serves as a pathway that lets current flow and releases heat generated by the battery to the outside. Circuit foil, short for circuit-use copper foil, is used in circuit boards for electronic devices such as TVs, computers, and smartphones.
Solus Advanced Materials has been racking up battery foil orders for Europe. Of the four companies that signed new battery foil supply contracts last year, three were battery makers in Europe. One of them was China's CATL, the world's largest battery company. In addition, it signed battery foil supply contracts with another Chinese battery company that entered Europe and with a Korean battery company.
Solus Advanced Materials' success in winning battery foil orders in Europe is thanks to its Hungary plant. Among copper foil companies worldwide, the only site producing battery foil locally in Europe is Solus Advanced Materials' Hungary plant. Solus Advanced Materials has been operating Hungary Plant 1 since 2020. Hungary Plant 2 began mass production in 2024. SK Nexilis completed a copper foil plant in Poland aimed at the European market, but has not started operations due to weak demand.
A push by Chinese battery makers to target the European market has also been a tailwind. After the launch of the Donald Trump administration effectively shut them out of the United States, Chinese battery companies turned their eyes to Europe. CATL is operating a plant in Germany and building Europe's largest plant in Hungary. CATL also plans to build an electric vehicle battery plant in Spain with Stellantis, the world's No. 4 multinational automaker.
BYD, the world's No. 1 electric vehicle maker, is pursuing the establishment of a battery production line along with an EV plant in southern Hungary. China's EVE Energy is building a cylindrical lithium-ion battery plant in Hungary to supply BMW. Envision AESC, a Japan-affiliated Chinese battery maker, is also building a battery plant in France. China's Sunwoda (欣旺达), the world's No. 9 battery manufacturer, is pushing to build its first battery plant in Europe in Hungary.
A battery industry official said, "As Chinese battery makers enter a saturation phase at home, they are expanding into Europe," and added, "Because the European battery market is still in its early stages and Chinese battery materials companies have not yet entered Europe, the structure could work to the advantage of Solus Advanced Materials, which has a local plant."