Korea Zinc has successfully made its first supply of copper foil to a global battery cell manufacturer. This marks the beginning of tangible results in the battery materials business, one pillar of the new ventures that Choi Yun-beom (Chairman) has been pursuing.
According to industry sources on the 13th, KZAM, Korea Zinc's copper foil manufacturer, has recently begun supplying copper foil for batteries to major global battery companies. The copper foil supplied by KZAM is expected to be installed in ESS (energy storage system) batteries produced in North America. The product is manufactured at KZAM's plant in Onsan, Ulsan.
Copper foil for batteries is a key material used in lithium-ion batteries. Since it determines the battery's energy density, charging performance, and lifespan, only products that pass strict quality certification procedures are adopted. With the market already dominated by existing companies, entry barriers remain high.
As a result, KZAM has gained access to the North American battery supply chain and can now seek business opportunities in the world's largest electric vehicle and ESS markets. Having secured delivery records, expectations for additional orders are also rising.
Korea Zinc established KZAM with 100% capital investment in March 2020 and declared its entry into the battery materials business. Since then, it has expanded operations by investing approximately 200 billion won, but faced difficulties due to prolonged electric vehicle market stagnation (caused by a temporary demand slump). Until last year, KZAM's annual revenue was zero. This contract is considered particularly significant for Korea Zinc.
Since taking office in 2022, Choi (Chairman) has been advancing its new business strategy known as the 'Troika Drive' (renewable energy · battery materials · resource circulation). Among these, the battery materials sector was the only area that had underperformed. Industry observers believe that Korea Zinc's accumulation of smelting technology and expertise led to improved process stability and product quality, resulting in this supply contract. As a latecomer, KZAM successfully achieved rapid product advancement by leveraging its accumulated electroplating process technology.
A Korea Zinc official stated, "This qualification and commencement of copper foil supply for batteries is a recognition of the technical capabilities and quality competitiveness that KZAM has accumulated over time." The official added, "Moving forward, we plan to further strengthen our competitiveness in the global battery materials market through continuous investment and research and development based on collaboration with customers."
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