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Deep Dive into Electrolytic Copper Foil: Capacity Growth, Industry Prospects, and Future Trends

Copper Foil as an Important Field in Copper Processing

In recent years, rapid development has been observed due to factors such as the growth of lithium batteries and the green industry. As an indispensable material in battery processing, as of the end of 2021, the nominal global capacity of lithium battery copper foil was 550,000 tons. With the capacity expansion efforts of relevant enterprises, it is anticipated that by 2023, the capacity of lithium battery copper foil will more than double compared to 2021, reaching 1.09 million tons. In terms of profitability, according to the latest corporate annual report data in 2021, Jia Yuan Technology had the highest gross profit margin in the processing business, reaching up to 30.03%. Nord and Kingboard Copper Foil also exceeded 15%. All three companies focus primarily on copper foil in their main business operations

Looking ahead to the future development of lithium battery copper foil, it is projected that domestic production capacity will rise to 1.659 million tons by 2025. Correspondingly, the compound annual growth rate of global lithium battery copper foil capacity from 2021 to 2025 is expected to reach 32%. The period from 2023 to 2024 is anticipated to be the peak period for capacity release.

 

Definition and Classification of Copper Foil
Copper foil refers to an extremely thin copper strip or sheet with a thickness below 200μm, primarily used as a key raw material for manufacturing Printed Circuit Boards (PCBs), Copper-Clad Laminates (CCL), and lithium batteries. According to the 2021 data from the National Bureau of Statistics and relevant information from CCFA (China Copper & Copper Alloys Fabricators Association), domestic copper foil processing accounts for approximately 3% of the total processed copper materials.

Copper foil can be classified based on the manufacturing method into Rolled Annealed Copper Foil (RA copper foil) and Electrodeposited Copper Foil (ED copper foil).

RA copper foil is manufactured by repeatedly rolling copper raw materials using physical methods. Due to its high production cost, technical complexity, and relatively smaller application scale, RA copper foil is primarily produced by foreign enterprises. It is mainly used in flexible copper-clad laminates, electronic circuit boards, and similar applications. The major global producers of RA copper foil include Nippon Mining (Japan), Fukuda Metal (Japan), Olin Brass (USA), Hitachi Cable (Japan), and Microhard (Japan). According to CCFA’s 2020 statistical data, the domestic production capacity of RA copper foil accounts for less than 2% of the total copper foil production capacity.

Electrodeposited copper foil is produced by converting copper raw materials into a copper sulfate solution, which is then electrolytically deposited using direct current in electrolytic equipment.It is characterized by lower production costs and technical barriers, extensive application, slightly heavier weight, and relatively higher costs.

In China, electrodeposited copper foil holds the largest market share, accounting for over 98% of the total copper foil production. It serves as a vital material for Copper-Clad Laminates (CCL), Printed Circuit Boards (PCBs), and lithium-ion battery manufacturing. Specifically in lithium-ion batteries, electrodeposited copper foil is favored for its excellent conductivity, heat dissipation, machinability, mature manufacturing techniques, and cost advantages, making it the preferred choice for the negative electrode current collector in lithium-ion batteries.

Composite copper foil refers to a novel material made by first vacuum sputtering a metal conductive layer onto the surface of plastic films like PET, PP, PI, and then thickening the copper layer to 1 micron or more using methods like aqueous electroplating. This material has not yet been extensively utilized. Compared to electrolytic copper foil, composite copper foil is relatively lighter, which can enhance the energy density of batteries. Simultaneously, it can improve battery safety and reduce material costs. These advantages suggest that composite copper foil may become the primary material for future negative electrode current collectors in lithium-ion batteries.

Electrolytic Copper Foil

According to GGII data, the global delivery of electrolytic copper foil reached 935,000 tons in 2021. Among these, 383,000 tons were for lithium-ion batteries, while 552,000 tons were for PCBs. China’s production accounted for over 60% of both total and specific product types, establishing itself as the primary producer of electrolytic copper foil worldwide.

China’s capacity and output for electrolytic copper foil have shown rapid growth. Based on CCFA statistics, from 2016 to 2021, China’s capacity surged from 329,000 tons to 721,200 tons, and output escalated from 292,000 tons to 656,000 tons. In 2021 alone, the output witnessed a staggering 34.21% year-on-year increase.

Industry data currently indicates that the investment for every 10,000 tons of lithium-ion copper foil equipment is approximately 280 million RMB(40.8 million US dollars), copper dissolution tanks, storage liquid tanks, low-position tanks, slitting machines, high-position tanks, filters, ED machines, and anti-oxidation tanks. The equipment investment for every 10,000 tons of PCB copper foil is about 290 million RMB(42.4 million US dollars), which involves additional costs for surface treatment machines compared to lithium-ion copper foil.

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