[Report] SK Nexilis, the Unsung Hero Behind Battery Driving Range and Power Improvements

World's Thinnest (4.5μm), Longest (56.5km), and Widest (1.33m) 'Dongbak' Production
Domestic 5th and 6th Plant Expansion... Overseas Plant Groundbreaking Confirmed Within the Year
Production Capacity to Expand 3 to 4 Times Current Scale by 2025

[Asia Economy Reporter Hwang Yoon-joo] On the 22nd, at the Buk-myeon 3 Industrial Complex in Jeongeup-si, Jeollabuk-do. About a 20-minute drive from Naejangsan, famous for its autumn foliage, the red butterfly symbolizing SK Group landed inside the Jeongeup Industrial Complex. On the newly renovated building, the name SK Nexilis (formerly KCFT), which SKC completed acquiring earlier this year, was clearly visible.

SK Nexilis produces 'copper foil,' a core material for electric vehicle batteries, 24 hours a day, 365 days a year. 'Copper foil' refers to a thin copper sheet about 10㎛ thick that acts as the anode current collector. The thinner the copper foil, the more advantageous it is for making electric vehicle batteries lighter and higher in capacity. This is because a thinner thickness allows more active material to be loaded, increasing energy density.

Upon entering the SK Nexilis Jeongeup plant, the unmanned robot 'Ddolddoli' caught the reporter's attention. As the factory expanded and the distance to the analysis lab increased, this robot was introduced this year to safely and quickly check copper foil samples. 'Ddolddoli' collects several samples produced in the factory and autonomously delivers them to the analysis lab. This scene symbolically shows the changes in the Jeongeup plant after being incorporated into SK Group.

Copper foil is produced by a 'plating' method. Unlike aluminum film, which is hammered thin, copper is plated by supplying a copper sulfate solution between a titanium drum and the anode while passing direct current electricity. The thickness of the copper foil varies depending on the drum's rotation speed and the current's intensity.

The manufacturing capability of copper foil is evaluated based on how thin it can be produced. Battery companies coat active materials such as anode materials on the copper foil, and recently, the trend has shifted to applying as much active material as possible to increase the driving range and output of electric vehicle batteries. Since thicker active materials add weight, producing thinner copper foil has become important.

However, making copper foil thinner alone is not enough. The thinner it is, the more prone it is to tearing and wrinkling. SK Nexilis possesses unique technology to manufacture the thinnest, longest, and widest copper foil in the world.

One thing that caught the eye in a corner of the SK Nexilis factory was a 'certificate.' Last year, they mass-produced the world's thinnest 4㎛ copper foil at a width of 1.4m and a world-record length of 30km. This technology is about 5 to 8 years ahead of competitors.

SK Nexilis improved the elongation rate of copper foil by more than twice and increased tensile strength by about 1.7 times, solving chronic wrinkling and folding issues in battery manufacturing processes. Recognizing the excellence of this technology, they received the President's Award, the highest prize among the '2019 R52 Jang Young-sil Awards,' in July this year.

◆ First Global Production Plant to be Confirmed Within the Year... Annual Capacity to Expand 3-4 Times by 2025

Based on world-class technology, SK Nexilis is expanding its production capacity. In addition to existing plants 1 through 4, plants 5 and 6 are under construction. After SKC acquired SK Nexilis in January this year, expansion decisions and groundbreaking were made rapidly. Plant 5 is 67% complete and is planned to start full-scale mass production next year. Plant 6 has also begun construction, with over 10% completed. As a result, SK Nexilis's copper foil production capacity is expected to increase from 34,000 tons annually (plants 1-4) by an additional 9,000 tons each from plants 5 and 6, totaling 52,000 tons.

Overseas expansion is also actively pursued. Currently, Southeast Asia, the United States, and Europe?regions with electric vehicle battery production plants?are selected as investment candidates, and site conditions such as power supply are being reviewed. The goal is to finalize overseas locations within the year and expand production capacity to 3 to 4 times the current level by 2025.

Kim Young-tae, CEO of SK Nexilis, explained, "The expanding Jeongeup plant can be seen as a preparation process for overseas plants. We are considering testing optimal production systems such as artificial intelligence (AI) domestically, then building state-of-the-art facilities overseas and linking them with domestic plants."

The strategy is to increase market share in the global battery materials market through large-scale expansion. Currently, SK Nexilis supplies copper foil not only to the three major domestic battery companies but also to global battery companies in China, Japan, and others. As automakers demand higher battery driving range and output, competition in technology among battery companies is intensifying.

In particular, SK Nexilis is attracting global battery industry attention by producing copper foil products that precede the technology of the domestic battery industry leading the world market. The longer the copper foil, the less loss occurs when replacing rolls during battery manufacturing, and the wider it is, the more it contributes significantly to battery companies' productivity improvement.

CEO Kim emphasized, "Copper foil manufacturers must have the capability to produce thin products for battery companies to develop products based on them. The global battery industry mainly uses 8 to 10㎛ products, and domestic companies with advanced technology demand 6㎛ products, but we have technology ahead of our customers, developing 4㎛ products."

He added, "The number of customers who recognize our technology and receive exclusive supply is increasing. We will solidify our status as the world's number one copper foil manufacturer by cooperating with global battery manufacturers."