● SK nexilis will supply Northvolt with copper foil produced in Poland for five years from 2024 worth up to KRW 1.4 trillion, enough for 1.7 million electric vehicles. 

●​ SK nexilis emerges as the one and only top-tier manufacturer capable of supplying a large number of high-strength wide copper foil to the European market.

SK nexilis, an invested subsidiary of SKC (CEO & President Woncheol Park) in the copper foil business for rechargeable batteries signed a large-scale, mid- to long-term supply contract with the Swedish company Northvolt, the largest rechargeable battery manufacturer in Europe.

On February 17 (local time), SK nexilis concluded a contract with Northvolt at Northvolt headquarters in Stockholm to supply cooper foil for rechargeable batteries produced at its plant in Stalowa Wola, Poland for five years from 2024. The contract’s volume is about 80% of copper foil needs required by Northvolt during the contract period, which amounts to KRW 1.4 trillion and can be used to for 1.7 million electric vehicles. From 2024, SK nexilis will run the plant in Poland with an annual production capacity of 50,000 tons.

The signing ceremony on this day was attended by key officials from both companies including SK nexilis General Manager of Marketing Jeongkyu Kim and Northvolt’s Co-founder and COO Paolo Cerruti. SK nexilis and Northvolt agreed to take this agreement as an opportunity to strengthen their mid- to long-term cooperation.

Northvolt is the most powerful local manufacturer in Europe in the global battery market dominated by South Korean, Chinese, and Japanese companies. It has received investments of more than KRW 1 trillion from European automakers including Volkswagen and Volvo and is working to construct a large-scale local production facility with a total capacity of 150 gigawatt-hours (GWh). With this contract with SK nexilis, Northvolt will have a stable and eco-friendly supply of copper foil, a key material for secondary batteries, and begin to mass-produce batteries. 

According to the market research agency SNE Research, the global copper foil market for rechargeable batteries is expected to grow to 75,000 tons by 2025 from 27,000 tons in 2021 with a high annual average growth rate of more than 40%. In particular, the competition for first-mover advantage is fierce because the market is expected to face a short supply of wide copper foil (with more than 1m-width) from next year which can drastically increase the productivity of rechargeable batteries. This is because new facilities of top-tier battery manufacturers have built-in wide copper foil processes whereas wide copper foil production of most manufacturers only accounts for 30-50%.

Wide copper foil accounts for more than 90% of SK nexilis production _ base_d on its overwhelming technology. In addition to the overwhelming production of wide copper foil, the products are well-received for their high strength and excellent price. This technology and competitive price are behind Northvolt’s selection of SK nexilis as its mid- to long-term copper foil supplier. Apart from the plant in Poland, SK nexilis plans to complete the construction of its Malaysian plant and start its investment in North America this year to build a system that can immediately respond to the demands of each region’s battery manufacturers.

An SK nexilis executive said, “With this mid- to long-term deal between SK nexilis, which has the world’s best copper foil manufacturing technology, and Northvolt, the largest European battery manufacturer, the competitiveness of both companies in the global electric vehicle market will further be enhanced,” and added, “SK nexilis is in negotiations with multiple global top-tier battery clients for additional mid- to long-term contracts and the results will be announced soon.” [End of _ document_]

[SK nexilis signed a contract with Northvolt to supply cooper foil for rechargeable batteries in mid- to long-term. SK nexilis General Manager of Marketing Jeongkyu Kim (right) and Northvolt’s COO Paolo Cerruti are signing the contract at Northvolt headquarters in Stockholm.]

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