[Asia Economy Reporter Ki-min Lee] Solus Advanced Materials has received final quality approval from LG Energy Solution for the battery foil, a core material for electric vehicle batteries, and has commenced mass production.
On the 8th, Solus Advanced Materials announced that the battery foil produced at its Hungary Plant 1 recently obtained final quality approval from LG Energy Solution. Having started the first shipment of battery foil last November, Solus Advanced Materials plans to use this as a foundation to diversify its customer base and expand its global market dominance, focusing on Europe.
This approval was carried out as an extension of the existing supply contract with LG Chem. In July 2019, Solus Advanced Materials signed a mid-to-long-term supply contract worth $380 million (approximately 420 billion KRW) with LG Chem for battery foil.
Under this contract, Solus Advanced Materials will supply battery foil to LG Energy Solution, which was spun off from LG Chem, for five years from January 1, this year, to December 31, 2025. The sales and supply region is Europe.
A representative from Solus Advanced Materials stated, "Even before the completion of Hungary Plant 1, we secured about 80% of the annual 10,000 tons supply volume, proving our competitiveness in orders," adding, "By consecutively meeting the high standards of global battery customers, the possibility of securing a market advantage in battery foil over competitors has increased."
Hungary Plant 1, the only battery foil production base in Europe, is known for producing high-quality battery foil by utilizing the world's first battery foil development technology and production know-how owned by Circuit Foil Luxembourg (CFL), a subsidiary of Solus Advanced Materials. Following the investment to expand Hungary Plant 2 to an annual capacity of 15,000 tons, Solus Advanced Materials plans to achieve an annual production capacity of 75,000 tons by 2025.
Meanwhile, on December 23 last year, LG Energy Solution participated in a third-party paid-in capital increase by investing approximately 57.5 billion KRW in Solus Advanced Materials' European subsidiary to establish a stable raw material supply system.
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