South Korea-based SK Group’s chemical unit SKC Inc has signed a memorandum of agreement (MoU) with the Malaysian government to build a copper foil plant for electric vehicle (EVs) batteries, according to local media reports.
SKC and its copper foil producing unit SK Nexilis will invest KRW700bn ($620mn) to build the plant in Kota Kinabalu located in the Malaysian state of Sabah. Copper foil is one of the key materials used to produce lithium-ion batteries for EVs.
The company said it will commence construction of the plant in the latter part of 2021. The factory is expected to have a capacity of 50,000mt per annum and will begin production in 2023.
Currently, the company manufactures 34,000mt of copper foil per annum. It is also proposing to build similar plants in Europe and the US. The company plans to expand local production to increase its output fivefold by 2025 to meet rising demand from lithium-ion battery makers.