[Asia Economy Sejong=Reporter Dongwoo Lee] The Korea Trade Insurance Corporation announced on the 28th that it will support Solus Advanced Materials with approximately 220 billion KRW (160 million USD) for the construction of North America's first battery copper foil (copper foil for secondary batteries) factory in Canada.
The newly constructed battery copper foil factory will be located on a 129,700㎡ site in Quebec, Canada, and is expected to mass-produce battery copper foil from the second half of 2024 at a scale sufficient for about 540,000 electric vehicles annually.
Solus Advanced Materials plans to carry out this project through its wholly-owned Canadian subsidiary, VES Canada, and the financial procurement will involve the Korea Trade Insurance Corporation along with Export Development Canada (EDC).
Through this project, the Korea Trade Insurance Corporation intends to actively support the entry of K-battery, materials, and components into the U.S. market by implementing a strategic approach specialized for changes in the trade environment of the United States, one of Korea's three major key markets.
Due to the production location requirements under the Inflation Reduction Act (IRA), which exclude electric vehicles from subsidies unless a certain percentage of parts are produced in the North American region, it has become increasingly important for Korean companies to swiftly establish overseas production facilities.
Lee In-ho, President of the Korea Trade Insurance Corporation, stated, "This project is a meaningful one that allows our companies to leverage changes in the trade environment as an opportunity and expand their base," adding, "We will actively support our companies so that electric vehicle batteries and related materials and components can lead the global market through various financial supports necessary for establishing production facilities in overseas markets."
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