LOTTE Energy Materials, SK Nexilis and Solus Advanced Materials, among Korea's copper foil (a thin film made by thinning copper) manufacturers, are actively seeking ways to break out of a slump. As the electric vehicle market downturn dragged on for years, demand in the downstream battery sector shrank sharply, leaving copper foil makers mired in losses. They are each exploring lifelines in areas such as energy storage systems (ESS) and artificial intelligence (AI).
On the 20th, according to the advanced materials industry, LOTTE Energy Materials recently decided to convert the entire battery foil line at its Iksan plant in North Jeolla into a circuit foil line. The Iksan plant is the only domestic production base for circuit foil, with an annual capacity of 20,000 tons.
Copper foil is largely divided into battery foil and circuit foil. Battery foil serves as a conduction path that carries current as an anode material in lithium-ion batteries. Circuit foil is used to form the circuitry on circuit boards inside various electronics such as TVs and smartphones.
A LOTTE Energy Materials official said, "With the rapid growth of the artificial intelligence (AI) market, we expect demand for circuit foil to rise sharply, so we converted the production line." The official added, however, "We are not abandoning the lithium-ion battery market," and noted, "We will continue producing battery foil at the Malaysia plant completed in 2024."
SK Nexilis continues to focus on the battery foil business, but is gradually shifting its supply target from electric vehicles to energy storage systems (ESS). As EV sales are slowing in the United States while ESS demand is expanding rapidly, the company has turned to producing battery foil for ESS.
Market research firm Global Market Insights projected that the U.S. ESS market, at $106.7 billion in 2024, will grow to $1.49 trillion by 2034.
An SK Nexilis official said, "As the sales mix of battery foil for ESS steadily increased last year, it established itself as a new growth driver," adding, "This year, we aim to focus on battery foil for ESS and build a stable sales portfolio."
Solus Advanced Materials is also increasing the share of battery foil for ESS. Using its Hungary plant as a base, the company supplies battery foil for electric vehicles and ESS to battery manufacturing plants located in Europe. Its Canada plant produces battery foil for North American ESS. Currently, ESS accounts for less than 5% of battery foil output, and the company plans to raise that to about 20%.
Instead, it is reducing the share of circuit foil. Solus Advanced Materials has been pushing since July last year to sell 100% equity in Circuit Foil Luxembourg, its Luxembourg-based subsidiary that manufactures circuit foil.
Some questioned the decision to cut the proportion of circuit foil at a time when the AI market is growing, saying it is hard to accept. In response, a Solus Advanced Materials official said, "In the mid to long term, we judge there is a strong chance the EV market will eventually recover," adding that it was "a 'selection and concentration' strategy to secure competitiveness in battery foil."