LG Chem invests W40 billion in Chinese battery copper foil company

LG Chem Senior Vice President Nam Chul, third from left, and DeFu Ma Ke, owner of Jiujiang DeFu Technology, second from right, pose for a commemorative photo at the investment signing ceremony, Sunday. Courtesy of LG Chem

By Kim Hyun-bin

LG Chem aims to strengthen its battery materials value chain by investing in a Chinese battery copper foil company. The LG affiliate said Sunday that it plans to invest 40 billion won in Jiujiang DeFu Technology, a major battery copper foil manufacturer. Copper foil is a key material used to develop rechargeable batteries.

“By cooperating with global companies, we plan to strengthen our value chain, as well as our competitiveness and capabilities to lead the battery materials market,” Nam Chul, senior vice president at LG Chem, said.

Battery copper foil is just one-fifteenth the thickness of a strand of hair, and is used to make thin copper plates that act as a passage for electricity within EV batteries. Thinner plates translate into more loads of active materials in anode materials, thereby increasing battery capacity.

The explosive growth of the battery market has led to a surge in demand for battery copper foil. According to Hana Financial Investment, demand for copper foil for rechargeable batteries is expected to reach 260,000 tons this year and 620,000 tons by 2025 with an average annual growth rate of 25 percent.

Defu is the third leading copper manufacturer in China and achieved 113 billion won in sales in the first quarter of this year, which is a four-fold increase compared to the same period of 2020. The company operates two plants in the Jiangxi and Gansu Sheng regions with annual copper foil production capacity standing at 49,000 tons, while the company aims to expand production to 78,000 tons next year.