SK Nexilis, a subsidiary of South Korea’s SK Group, has signed a supply agreement with Swedish battery maker Northvolt for copper foil worth up to 1.4 trillion won ($1.08 billion) over five years. The deal is set to come into effect next year and is expected to cover around 80% of Northvolt’s copper foil needs for battery production. The volume is estimated to be sufficient for the batteries of around 1.7 million electric vehicles.
SK Nexilis is currently building a copper foil factory in Poland, which is scheduled to start operations in the second half of 2024. The plant will have an annual production capacity of 50,000 tonnes, with the total investment by SK Group and its subsidiary put at 900 billion won ($693 million). The company is also planning to build copper foil plants in Malaysia, the USA, and Canada to establish a global production network and reach an annual production capacity of 250,000 tonnes by 2025.
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Northvolt has been producing battery cells at its battery factory in Skellefteå, Sweden, since the end of 2021 and has been delivering the cells since spring 2022. The battery maker also plans to build additional factories in Borlänge, Gothenburg (for the Volvo plant in Torslanda), and in Heide, Germany. However, high energy prices are currently affecting the construction of the Heide factory.
In addition to the supply agreement with SK Nexilis, Northvolt aims to cover 50% of its raw material needs from recycled batteries through a large-scale recycling program by 2030.
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SK Nexilis is in talks with other top global battery customers about further supply contracts and plans to announce the results soon. Copper foils, along with aluminum foils, are used as carrier foils in electrode production. The extremely thin copper foil is coated with graphite for the anode. The agreement between SK Nexilis and Northvolt marks a significant milestone for both companies as they continue to develop and expand their presence in the global EV market.
