Solus Advanced Materials announced on January 15 that last year's efforts to diversify its battery foil client base have expanded its business foundation, and these achievements are expected to translate into full-scale mass production and sales starting this year. With demand recovering by region and cost competitiveness being secured through local production, expectations for a recovery in profitability are rising.
In November last year, Solus Advanced Materials signed a supply contract for battery foil (copper foil for batteries) with a top 10 global Chinese battery manufacturer currently building a battery plant in Europe. With this, the company has secured a total of eight clients, the highest among domestic copper foil producers. Mass production supply for new clients is scheduled to begin sequentially this year, which is expected to contribute to growth in battery foil sales. In addition, the company is working to secure two more clients this year, aiming to build a portfolio of ten clients in total.
Solus Advanced Materials' local production systems in Europe and North America are considered key factors for mid- to long-term profitability improvement. The Hungary plant is effectively the only production base in Europe capable of local mass production of battery foil, offering advantages such as reduced logistics costs and minimized tariff risks. In particular, as the European Union strengthens its supply chain localization policies and demands a higher proportion of local sourcing, this production base not only helps secure clients but also supports the formation of a stable margin structure.
The gradual recovery of the European electric vehicle (EV) market is also seen as a favorable environment for improved performance. According to market research firm Fortune Business Insights, the European EV market is projected to grow to approximately $493 billion (about 715 trillion won) by 2030.
In North America, the company is expected to benefit from the rapid growth of the energy storage system (ESS) market. BloombergNEF forecasts that cumulative ESS installations in North America will reach nearly 133 gigawatts (GW) by 2030, with the market size expanding to about 170 trillion won.
Solus Advanced Materials plans to complete the only battery foil plant in North America, located in Granby, Quebec, Canada, in the second half of this year and begin full-scale production next year. This plant will serve as a strategic hub for producing and supplying battery foil for both EVs and ESS batteries in North America, providing a supply advantage and long-term client lock-in effect in the North American market. Notably, increased policy uncertainty in the United States and rising construction and labor costs have heightened entry barriers for competitors, which is also cited as a factor supporting the company's long-term competitiveness.
Improvement in the product mix is also expected to enhance profitability. The battery foil market is shifting toward ultra-thin products of 6 micrometers (μm) or less, down from the previous 8-10 μm, in line with the trend toward lighter EV batteries. Ultra-thin products contribute to improving the energy density of lithium-ion batteries and, as high-end products, offer relatively higher profitability. Currently, Solus Advanced Materials possesses the technology to mass-produce products with a thickness of 4 μm and is expanding the proportion of high-value-added products through continuous research and development (R&D) investment.
This expansion of the client base, favorable changes in market conditions, and increased proportion of high-value-added products are expected to stabilize the company's profit structure and lead to a gradual improvement in performance this year.
A representative from Solus Advanced Materials stated, "Last year, we focused on building our business foundation by diversifying our client portfolio, and this year will be the first year in which those achievements are reflected in our results. We will actively seize growth opportunities amid the recovery trends in the European EV and North American ESS markets."
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