Solus Advanced Materials Secures 150 Billion KRW Incentives from Quebec Provincial Government, Canada

Aerial view of Solus Advanced Materials' battery copper foil factory in Quebec, Canada. Photo by Solus Advanced Materials

Solus Advanced Materials has secured incentives worth 150 billion KRW from the Quebec provincial government in Canada for its battery foil (copper foil for electric vehicle batteries) factory under construction in Quebec, Canada.

Solus Advanced Materials announced on the 4th that its overseas subsidiary, Volta Energy Solutions Canada, signed an incentive agreement with the Quebec Investment Corporation under the Quebec provincial government for the first battery foil factory construction project in Canada, formalizing provincial government incentive support worth 150 million Canadian dollars (approximately 150 billion KRW).

The Quebec provincial government had promised incentive support of 150 million Canadian dollars at the groundbreaking of Solus Advanced Materials' battery foil factory in September last year. Negotiations regarding interest-free loans have been completed, and both parties have agreed to the final contract. Additional financial support programs such as tax credits and workforce training programs are also under discussion.

Solus Advanced Materials' new battery foil factory, located in the Granby region of Quebec, Canada, is the second overseas battery foil production base following Hungary. To secure a foothold in the North American electric vehicle market, Solus Advanced Materials entered Canada for the first time domestically in 2021 by establishing a production base in the region following Europe.

Quebec, where the only battery foil factory in Canada is being established, produces more than 99% of its electricity through eco-friendly power generation methods such as hydropower and wind power, making it an optimal location for the electric vehicle industry, which emphasizes eco-friendliness throughout the value chain. Canada, which has accelerated the establishment of the North American electric vehicle battery supply chain early on, aligning the federal government's carbon neutrality policy with the future growth prospects of the electric vehicle market, stated that the first North American battery foil factory settling in Quebec has contributed significantly to Solus Advanced Materials' progress in completing the domestic battery production chain.

With this incentive support securing crucial investment funds, Solus Advanced Materials plans to accelerate the construction of its Canadian factory. The Quebec battery foil factory, currently progressing smoothly in construction, is scheduled to begin mass production in 2026, starting with an initial annual capacity of 25,000 tons and eventually establishing a total battery foil mass production system of 63,000 tons.

Kwok Geun-man, CEO of Solus Advanced Materials, said, "Through consultations with the Quebec provincial government regarding the Canadian factory, which broke ground last year, we finalized an incentive contract worth 150 billion KRW," adding, "With the active support of the Quebec provincial government, we expect the construction of the first battery foil factory in Canada, scheduled for completion in the second half of next year, to gain momentum."

Additionally, Solus Advanced Materials is preparing for further incentive negotiations with the Canadian federal government within this year. If federal government incentives are also confirmed, a significant portion of the investment funds for the Canadian factory will be sourced from the support amounts provided by the Quebec provincial government and the federal government.