Sabah to build world's biggest copper foil plant for EV batteries

SK Nexilis, a South Korean copper foil producer for electric vehicles (EV) under SK Group, will be building its first overseas plant in Kota Kinabalu, Sabah, Malaysia. The company will invest a total of RM 2.3 billion on the plant with an aimed annual production capacity of 44,000 tons, Business Korea reports that it is the world's biggest copper foil plant.

Construction of the plant is expected to start in the first half of 2021 with commercial operation expected to start in 2023.

The copper foil producer is a subsidiary of chemical and material company SKC, which is an affiliate of SK Group.

During a board meeting, SK Group revealed that the choice of Kota Kinabalu as their first-ever overseas plant is due to the region’s stable, low electricity cost, and high reliance on hydropower.

The company also added that the proximity to the port and the presence of an international airport as other key factors in their decision.

To pre-emptively comply with the global clients’ growing demand for products with a smaller carbon footprint, the factory will also be built to run on renewable energy.

When the plant is completed, SK Nexilis’ total battery copper foil production will stand at 100,000 tons per year. Currently, the company has 4 plants with the capacity of 34,000 tons annually.

Once the plant in Malaysia and the other 2 new plants that are still in construction starts operation will help the company achieve its goal.

Minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali welcomed the investment as this is an opportunity to lure more investors into the Malaysian EV battery manufacturing sector.

“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.”