[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Chem is planning to acquire Nippon denkai, a Japanese battery copper foil manufacturer.
LG Chem plans to secure management rights by acquiring a stake from "Tex tech," the largest shareholder of Nippon Denkai, by the end of next month when Japan's fiscal year ends. As competition for the global battery supply chain intensifies, LG Chem's management is reportedly trying to complete the acquisition as soon as possible.
Copper foil is a thin copper film that covers the cathode material of an electric vehicle battery. It is the path through which electrons move and releases heat generated from batteries to the outside. About 40㎏ of copper foil is needed for one electric vehicle, and the demand for copper foil is also increasing significantly as the electric vehicle market grows rapidly. Demand for copper foil for batteries is expected to increase nearly six times in five years, an annual average of 40% from 13.5 million tons in 2020 to 74.8 million tons in 2025.
Nippon Denkai is the world's sixth to seventh-largest copper foil company in terms of production. Currently, 13,000 tons of copper foil are produced annually in Japan (9,000 tons) and the United States (4,000 tons), respectively. In July last year, it announced that it would invest $ 150 million (about 194.4 billion won) to build a new plant with an annual capacity of 9,500 tons in Georgia, USA. The factory will start mass production of prototypes next year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
