In a bid to cater to the rising demand for electric vehicles in North America, Toyota is in talks to establish a joint venture with SK Nexilis. The collaboration aims to focus on the production of copper foils, an essential component for electric car battery anodes. As per the initial arrangement, SK Nexilis will take charge of copper foil production, while Toyota’s trading company, Toyota Tsusho, will work towards attracting battery manufacturers in North America to procure these foils.
SK Nexilis’ parent company, SKC, released a statement in Korean outlining the proposed division of tasks between the two entities. SKC, a prominent chemical company, is a part of the SK Group, which also includes battery manufacturer SK On.
Although the memorandum of understanding has been signed, specific details regarding investment, schedule, and location have not been disclosed yet. Both companies, however, are strongly committed to collaborating in the production and supply of copper foil products with exceptional physical properties, catering to potential customers in the North American region.
Both partners foresee a significant surge in battery production in North America starting from 2025. With the existing copper foil production in the region currently limited to less than 1,000 tonnes per year, Toyota Tsusho and SK Nexilis anticipate potential supply bottlenecks, which they intend to address through their joint production venture.
The South Korean company has outlined its ambitions to establish a global production system with an annual production capacity of 250,000 tonnes. Aside from North America, SK Nexilis has plans for additional plants in Malaysia (starting in 2023) and Poland (anticipated in 2024).
Additionally, the companies have agreed to cooperate on the supply of battery raw materials. While SK Nexilis is likely to handle the procurement of required copper raw materials, Toyota Tsusho is already active in the lithium business in Argentina.
