South Korean battery foil makers revive plants as demand rebounds

South Korean battery copper foil manufacturers are restarting production lines after the electric vehicle market downturn, helped by rising North American demand for non-Chinese copper foil used in energy storage systems (ESS) and signs of recovery in Europe. SKC subsidiary SK Nexilis posted record quarterly revenue of ₩254 billion ($184.4 million) in the second quarter of this year. Lotte Energy Materials reported ₩194.2 billion ($141.0 million), up 21% from the previous quarter, while Solus Advanced Materials' battery foil division generated ₩75 billion ($54.4 million), up 22%. The companies have benefited from U.S. rules restricting Advanced Manufacturing Production Credit (AMPC) eligibility when more than 40% of battery costs come from Foreign Entities of Concern (FEOC), including China. Their factory utilization rates also increased, although industry officials expect profitability to improve only next year because of expansion-related fixed costs and lower margins for ESS-grade foil. European EV sales rose 31% year over year to 2.45 million units in the first half of this year, while battery installations increased 29% to 131 GWh.

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