SKC Invests 120 Billion KRW in Expansion of SK Nexilis Plant 6

[Asia Economy Reporter Park So-yeon] SK Nexilis, the copper foil manufacturing investment company of SKC, has decided to accelerate the investment for the expansion of its 6th factory. With an investment of 120 billion KRW, construction of the 6th factory with an annual production capacity of 9,000 tons will begin in August at the Jeongeup plant. This is the second investment decision since SK Nexilis was incorporated into SKC, following the investment in the 5th factory in March this year.

On the 1st, SK Nexilis announced that it signed an investment agreement with Jeollabuk-do Province and Jeongeup City to expand the copper foil factory, a key anode material for electric vehicle batteries.

The goal is to complete the factory in the first quarter of 2022. Once the 6th factory is operational, SK Nexilis’ copper foil production capacity will increase to 52,000 tons.

This investment decision aims to secure a leading position in the rapidly growing copper foil market. Currently, the copper foil market is expanding rapidly alongside the electric vehicle battery market. According to market research firm SNE Research, the electric vehicle battery market using copper foil is expected to grow at an annual rate of about 40% until 2025.

In particular, the demand for ultra-thin copper foil under 6μm, produced by SK Nexilis, is expected to increase even faster. To extend the driving range of electric vehicles, higher battery capacity and weight reduction are necessary, for which ultra-thin products are advantageous. They allow more active material to be contained in the battery, improving efficiency. SK Nexilis possesses the technological capability to mass-produce the world’s thinnest 4μm copper foil in a 1.4m wide format with the world’s longest length of 30km.

Considering the market characteristics of supply shortage and competitive technological advantage, SK Nexilis has decided to rapidly expand its production capacity. After completing the expansion of the 4th factory earlier this year, SK Nexilis has a production capacity of 34,000 tons. In March, it announced plans to expand the 5th factory and started construction of a 9,000-ton capacity factory aiming for completion in the third quarter of 2021. With the completion of the 6th factory, production capacity will increase to over 50,000 tons.

SK Nexilis is also considering global expansion. Entering markets such as the United States, Europe, and Asia, where battery customers are located, will allow quick responses to customer requests. These regions have available land owned by SKC, which is advantageous for establishing bases quickly and in various other aspects.

An SK Nexilis official said, "Announcing an additional expansion plan just three months after March shows the confidence of SK Nexilis, which possesses advanced technology," and added, "We will quickly finalize further expansion plans, including global expansion, to establish ourselves as a top global copper foil manufacturer."

This content was produced with the assistance of AI translation services.