l Up to 120 billion won to be invested in the expansion of fifth factory ∙∙∙ Additional copper foil production of 10,000 tons by 2022

l Active investment in the fast-growing electric vehicle and copper foil markets ∙∙∙ Continued strengthening of growth engine in mobility

SKC’s wholly owned subsidiary KCFT decided to invest in the expansion of its fifth factory. SKC acquired KCFT, a global manufacturer of copper foil as the core material for batteries of electric vehicles. KCFT plans to utilize its advanced technology to expand the production capacity of high-quality copper foils to respond proactively to the rapidly growing market demand.

KCFT’s Board of Directors held a meeting on March 5 and decided to invest 81.5 billion won in expanding the company’s copper foil production capacity. Including the preliminary investment last year, the total amount is about 120 billion won. KCFT will construct fifth factory – which will have an annual production capacity of 10,000 tons -- in its Jeongeup Factory by the third quarter of 2021. Its goal is to begin commercial operation of the factory by early 2022. With the addition of fifth factory, KCFT’s annual copper foil production capacity will be about 40,000 tons.

KCFT made the investment decision to respond proactively to the rapidly growing electric vehicle battery market. According to SNE Research, the electric vehicle and its battery markets are expected to grow by an annual average of 28% and 40%, respectively, by 2025. As such, the demand for copper foils, the core material for batteries, is also expected to grow continuously.  

In particular, the demand for ultra-thin copper foil measuring 6㎛ or less, for which KCFT owns advanced technology, is expected to grow even faster. Increasing the capacity and decreasing the weight of the battery are crucial for extending the distance between the charging of electric vehicles, and ultra-thin products are essential to achieve it. Thinner copper foils can contain more negatively charged active materials to increase capacity and reduce weight. 

KCFT has the technology to produce the world’s thinnest copper foils. In October 2019, it demonstrated mass production of the world's thinnest (4㎛) copper foil stretched to the world's longest (30km) roll 1.4m wide. Its fifth factory is preparing the production of ultra-thin, high-quality copper foils faster and more efficiently.

KCFT is also considering entering the global market. It can respond to customers’ requests sooner if it can establish its presence in the United States, Europe, and Asia where the battery customers are. It will be easier for KCFT to secure a local basis quickly since SKC has spare areas in its production facilities in said regions. KCFT is reviewing ways to enter the foreign markets jointly with SKC.

“KCFT is one of the few copper foil manufacturers that can produce high-quality products needed by global battery manufacturers. We intend to continue to grow by investing in developing high-performance product production technology as well as the best productivity level,” a KCFT official said. [End]