SKC Plans to Acquire KCFT, Top Producer of Copper Foil for Lithium Batteries

SKC would acquire KCFT, the world's top manufacturer of copper foil for the use of lithium batteries, to diversify its business portfolio, according to report on January 6. SKC is a South Korea-based company mainly engaged in the production and sale of polyethylene terephthalate (PET) film.

It is reported that on January 7th, SKCFT Holdings, a subsidiary of SKC, is set to purchase all KCFT shares from U.S-based private equity fund Kohlberg Kravis Roberts & Co. for 1.19 trillion won (the US $ 1 billion).

copper foil for lithium batteries image

SKC, established in 1976, is mainly engaged in the chemical business and membrane business, of which the operating profit of the chemical business accounts for more than 80%. The entry of competing companies has raised concerns about overcapacity in the main product market. Therefore, President Li said that the company will transition to the semiconductor materials business.

In a regulatory document, the company wrote: "Given the profitability and market planning of copper foil (the core material of electric vehicle batteries), we decided to explore and develop this industry."

In recent years, major automakers around the world are actively developing the electric vehicle industry, making the demand for a lithium-copper foil for vehicles strong, and the increasing use of automotive electronics, coupled with greater server demand, will keep the industry in short supply in the coming years.

lithium battery for electric car image

Copper foil is a core material for the negative electrode of lithium batteries, which has an important impact on the energy density and other properties of the battery, accounting for about 5% -8% of the total product cost. Half of the copper foils within the market where the product with a thickness of one-fifth of the hair made of copper, and KCFT is able to produce the one with 4.5μm thick which equals to one-thirtieth of the hair and 50 km long of copper foil coil.

SKC stated that KCFT is the only manufacturer of the copper foil for lithium batteries in the world capable of producing ultra-thin, high-strength foil products, with the highest level of production efficiency in the world, and its goal is to triple the capacity of KCF by 2022. KCF Technologies Co's sales accounted for 15% of the whole market shares, and its major customers include LG Chem, Samsung SDI, and Panasonic.

 

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