In a strategic move towards enhancing its position in the electric vehicle (EV) market, renowned German battery manufacturer Varta has reaffirmed its commitment to producing battery cells for electric cars. The company has entered into a partnership with South Korean entity SK Nexilis, a notable manufacturer of copper foil crucial for battery cell production.
As per reports from South Korean media, Varta is set to utilize SK Nexilis’ high-quality anode copper foil in its forthcoming production plant dedicated to electric car battery cells. This production facility, boasting an annual capacity of 3 gigawatt-hours (GWh), is projected to commence commercial operations in 2026. This development serves as a clear indicator that Varta is pressing forward with its ambitions to engage in large-scale battery cell production for electric vehicles, following a temporary pause in its plans last year attributed to cost-related considerations.
Varta had earlier introduced the V4Drive cylindrical cell, designed as an augmenting battery solution in the 21700 format, in April 2021. Building on this momentum, the company subsequently unveiled plans for the production of more sizable cylindrical cells for battery electric vehicles (BEVs) just six months later.
Initial stages of pilot production for the V4Drive cells were initiated towards the close of 2021. While plans were originally in place for mass production to commence in 2023, with a minimum capacity of 2 GWh, Varta decided to temporarily shelve this strategy.
Notably, SK Nexilis, a subsidiary of the prominent South Korean conglomerate SK Group, is actively working towards establishing a copper foil manufacturing facility in Poland. In February 2023, the company secured a supply agreement with Northvolt, underlining its significant industry presence. The anticipated launch of operations at the Polish factory is scheduled for 2024.
In a noteworthy collaboration, SK Nexilis has partnered with Toyota to explore the establishment of a joint venture in North America, focused on copper foil production. The company boasts the capability to produce remarkably thin copper foils, a quality that sets it apart. According to data from SNE Research, SK Nexilis currently holds the title of the world’s largest copper foil manufacturer, boasting an annual production capacity of approximately 52,000 tonnes. With aspirations to further expand, SK Nexilis aims to elevate its annual production capacity to an impressive 250,000 tonnes by the year 2025. The company’s extensive roster of key clients includes industry giants such as LG Energy Solution, Samsung SDI, SK On, Panasonic, and CATL.
An SK Nexilis representative conveyed enthusiasm regarding the extended global reach of their top-tier copper foil offerings. This strategic move is set to not only elevate SK Nexilis’ standing but also stimulate the growth of EV technology on a broader scale.
As Varta forges ahead with its renewed plans in collaboration with SK Nexilis, the dynamic partnership between these industry players is poised to play a pivotal role in shaping the future landscape of electric vehicle technology and battery production on a global scale.
