SK GROUP unit’s SK Nexilis has chosen Malaysia as its first overseas investment location. During a board meeting, the company has decided to build a plant capable of producing 44,000 tons of copper foil for electric vehicle (EV) battery in a year.
The facility plant will be built in KKIP Industrial Complex, Kota Kinabalu with construction to tentatively begin in the first half of 2021 and commercial operations to kickstart by 2023.
When the plant – with a proposed investment of approximately 650 billion won (RM2.3 bil) – is completed, SK Nexilis’ total battery copper foil production capacity will jump to stand at 100,000 tonnes per year.
SK Nexilis told Korean Times that this plant will be running on renewable energy, in a bid to pre-emptively comply with global clients’ growing demand for products with a smaller carbon footprint.
“As a global leader in thin-tech innovation for copper foil manufacturing, we believe SK Nexilis’ presence will attract more investors to complete Malaysia’s EV battery manufacturing supply chain network, making us a hub for high precision and high-quality copper foil for niche applications,” commented Senior Minister and Minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali.
According to SK Nexilis, it wants to build a facility that can fully materialize its technology of making the thinnest and widest battery copper foil and Kota Kinabalu was chosen as the location for its first overseas base due to the region’s stable and cheap power supply.
The copper foil producer further added that Malaysia has the most stable power supply among Southeast Asian countries, as well as having low electricity cost and a high reliance on hydropower.
In addition, Kota Kinabalu infrastructure such as port and international airport, and the city has abundant available land for further expansion of the plant makes it a suitable location.
“By building the plant in Malaysia, we will improve cost competitiveness and enhance our commitment to RE100, so we can consolidate our status as the world’s No 1 supplier of battery copper foil,” SK Nexilis said in a statement.
SK Nexilis’ parent company, SKC, and five other SK Group companies are participating in RE100, a global campaign urging companies to run on 100% renewable energy. The group was the first member of RE100 initiative in South Korea.
Moving forward, the copper foil producer is considering further investments in Malaysia, Europe and the US to quickly respond to the rapidly growing EV market. Through this, SK Nexilis plans to expand its production capacity to five times that of the current level by 2025.
Meanwhile, SK Nexilis is currently in the midst of submitting their application for manufacturing licence to MIDA. – Jan 27, 2021
