[Market Focus] Solus Advanced Materials Surges 13% on News of Battery Copper Foil Supply Deal with Chinese Manufacturer

Solus Advanced Materials is showing strong performance in early trading.

As of 9:05 a.m. on November 26, Solus Advanced Materials was trading at 9,100 won, up 13.75% (1,100 won) from the previous day. The company's preferred shares, Solus Advanced Materials 1 Preferred and Solus Advanced Materials 2 Preferred B, also surged by more than 20%.

Investor sentiment appears to have been boosted by news that the company signed a supply contract for approximately 20,000 tons of battery copper foil with a top 10 global Chinese battery manufacturer.

The client is scheduled to begin production at the end of next year and enter full-scale mass production in 2027. Batteries using Solus Advanced Materials' copper foil are expected to be ultimately supplied to a European-based German global original equipment manufacturer (OEM).

Han Byunghwa, a researcher at Eugene Investment & Securities, commented, "Copper foil for energy storage systems (ESS) has started to be supplied to a Korean battery company in Europe, and is also scheduled for supply to a Korean battery company and the largest local manufacturer in the United States." He added, "Although short-term performance is sluggish, the company is expected to benefit from securing an early lead in copper foil production in Europe and North America." He set a target price of 16,000 won.