South Korea’s SK Nexilis Company has agreed to supply local battery electric vehicle (EV) manufacturer LG Energy Solution Company (LGES) with up to KRW 3 trillion (US$ 2.2 billion) worth of copper foil over the next 5-6 years, according to unconfirmed local reports. Copper foil is a key component of EV batteries, used mainly as separator material between cathodes and anodes.
This is understood to have been the first deal signed between the two companies in the last five years, after LGES and LG Chem ceased signing new business with SK Group’s SK On, SK Nexilis and SKIET, following a dispute over alleged leaks of trade secrets in 2020.
Local officials have suggested that the thaw in relations between the two sides is due mainly to growing pressure for South Korea battery manufacturers to reduce their dependence on Chinese supply chains, as they look to expand their businesses in the US.
A local industry official told reporters the relationship between the two companies “has improved under the current management. The Trump administration’s supply chain policy of decoupling from China led them to renew their supply deal.”
An SK Nexilis official confirmed that his company had held new talks with LGES, but did not confirm the agreement.
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