DeFu is the third-ranked copper laminate manufacturer in China based on production capacity, and it produces ‘battery laminate,’ a copper laminate for secondary batteries, and copper laminates for printed circuit boards (PBC) in electronic products
LG Chem is investing in equities for China’s Jiujiang DeFu Technology (DeFu), which manufactures copper laminate that is a core part of secondary batteries, by investing approximately 40 billion KRW. DeFu is the third-ranked copper laminate manufacturer in China based on production capacity, and it produces ‘battery laminate,’ a copper laminate for secondary batteries, and copper laminates for printed circuit boards (PBC) in electronic products.
“We will strengthen our value chain through omnidirectional collaboration with global companies,” adding, “We will enhance the competitiveness for existing businesses and capacities for new businesses to lead the battery materials market,” said Chul Nam (Senior Vice President / President, Advanced Materials Company).
According to Hana Financial Investment, the global market demand for secondary battery copper laminates is expected to grow from 260,000 tons this year to 620,000 tons by 2025 at an annual average of 25 per cent.
Third-ranked copper laminate manufacturer in China
DeFu is the third-ranked copper laminate manufacturer in China based on production capacity, and it produces ‘battery laminate,’ a copper laminate for secondary batteries, and copper laminates for printed circuit boards (PBC) in electronic products. It operates production plants in the two regions of Jiujang, Jiangxi Province and Lanzhou, Gansu Province in China.
The company’s current production capacity is 49,000 tons annually, and it plans to expand its scale to 78,000 tons by 2022. Q1 revenue was posted as 113 billion KRW, quadrupling in revenue compared to the same period of the previous year.
LG Chem plans to focus on fostering the battery materials business as its new growth engine, thus deciding to make equity investments in DeFu, which possesses not only growth potential, but also synergy effects between businesses. Furthermore, LG Chem plans to enter an MOU to construct a long-term cooperative partnership in the copper laminate business with DeFu, while continuing talks about a variety of cooperation plans for the battery laminate business.
Copper laminate is a thin copper sheet measuring to about 1/15 the size of human hair, and it is a core material for EV batteries that is used in battery anode materials to make electric currents flow. It is expected that demand will rapidly grow due to the explosive growth of the battery market.
