Samsung SDI Co., South Korea’s third-largest battery maker by battery usage, has picked Lotte Energy Materials Corp. as the exclusive supplier of copper foil for its first battery plant in the US. The site is being built in partnership with Netherlands-based automaker Stellantis N.V.
According to the battery industry on Monday, the Samsung SDI-Stellantis joint venture, dubbed StarPlus Energy (SPE), has decided to use Lotte Energy’s copper foil, a key material in lithium-ion batteries.
Korea’s major copper foil producer, formerly Iljin Materials Co., was the only copper foil supplier to have passed SPE’s quality test, which normally takes a year, said industry sources.
Copper foil, also known as elecfoil, is a thin foil that surrounds the negative end of a lithium-ion battery called the anode. High-strength copper foils are essential to making safer, high-density rechargeable batteries.
Considering that the Samsung SDI-Stellantis JV plans to move up the launch of its first US battery plant to later this year, Lotte Energy is expected to enjoy a recovery in earnings later this year despite the ongoing EV slowdown.
The first plant was originally planned to open in early 2025. But the battery JV has decided to open it earlier because it aims to secure US government subsidies under the Inflation Reduction Act, which favors EVs and batteries produced in North America, earlier than expected.
The JV plans to start operating its second battery plant with an annual capacity of 34 GWh in the US by 2027. It is building two US plants in Indiana.