SK Nexilis, First Overseas Factory Located in Malaysia

Board Meeting to Approve Overseas Factory Establishment as Early as Next Week
Considering Factory Establishment in Eastern Europe and Americas in Addition to Malaysia

[Asia Economy Reporter Hwang Yoon-joo] SK Nexilis, a producer of copper foil, one of the materials for electric vehicle batteries, has decided to build its first overseas production plant in Malaysia.

According to industry sources on the 3rd, SK Nexilis plans to hold a board meeting as early as next week to approve Malaysia as the site for its overseas production plant.

The Malaysian plant, scheduled to begin construction in the first half of next year, will be equipped with the latest facilities such as artificial intelligence (AI). A system that can be linked in real-time with the domestic Jeongeup plant will also be established.

Copper foil is a copper film used in the battery anode and is an important material that determines battery price and performance. The thinner the copper foil, the higher the battery output can be, and if it is long and wide, the manufacturing cost of the battery can be reduced. Although latecomers such as China also produce wide products, SK Nexilis holds the world’s number one technology for making copper foil that is long, wide, and thin. It supplies copper foil to major battery companies including the three domestic battery manufacturers, China’s CATL, and Japan’s Panasonic.

According to the electric vehicle battery industry, the copper foil market size is expected to grow from about 1 trillion won in 2018 to 14.3 trillion won by 2025. SK Nexilis aims to become a global copper foil manufacturer through the establishment of overseas plants.

In addition to Malaysia, expansion in Europe and the Americas is also under consideration. The domestic Jeongeup plant is also undergoing expansion. When the 5th plant is completed in 2021 and the 6th plant in 2022, the annual production capacity will increase from 34,000 tons to 52,000 tons. SK Nexilis plans to expand this to 3 to 4 times the current production capacity by 2025.