Just Auto

Daily Newsletter

07 August 2023

Daily Newsletter

SK Nexilis to supply foil to Varta

Initial terms expected to be extended in line with growing demand for EV batteries

South Korean copper foil manufacturer SK Nexilis said it had signed a deal with German automotive battery manufacturer Varta to supply future lithium-ion mass production plants.

Copper foil is a key component in battery anodes.

SK Nexilis, a subsidiary of South Korean chemicals group SKC, said it had signed an exclusive deal to supply foil to Varta’s first electric vehicle (EV) battery plant, according to local reports.

Details remained confidential but the deal was understood to run for at least five years with initial terms expected to be extended in line with growing demand for EV batteries.

The news came shortly after SK Nexilis signed a KRW1.4trn (US$1.1bn) contract to supply foil to Sweden’s Northvolt for its European EV battery operations.

SK Nexilis claims technology to produce the world's thinnest copper foil as well as widest and longest rolls of up to 1.4 metres and 77km respectively.

Last week, it announced an agreement to establish a joint venture in North America with Toyota Tsusho Corporation to produce battery grade copper foil for the fast growing electric vehicle (EV) industry. SK Nexilis said it aimed to have global capacity for 250,000 tons of foil per year by 2026.

In addition to factories in South Korea, the company is building a plant in Malaysia scheduled for completion towards the end of this year and a Polish factory which is expected to become operational in 2024.

AI is a key part of the digital revolution shaping the automotive sector

GlobalData estimates the total AI market will be worth $909 billion in 2030, having grown at a CAGR of 35% between 2022 and 2030. The automotive sector is undergoing a digital transformation fuelled by changing global supply-chain dynamics, tighter market competition, and rising inflation. AI is a key part of this digital revolution. Focus is directed toward driver assistance features for safety and hazard detection and greater automation of many vehicle processes and functions. Simultaneous localization and mapping (SLAM), facial recognition, and motion tracking will be vital for developing incockpit safety features such as early driver fatigue detection. For the most part, the automotive sector will not play a significant role in creating and developing generative AI hardware or platforms. Instead, it will be a key driver for innovations in machine learning platforms and associated IoT hardware for autonomous driving and ADAS. This will also help to drive advances and greater scale-up of adoption of these AI technologies in adjacent sectors such as travel and tourism and construction.