Solus Advanced Materials, a South Korean copper foil manufacturer operating Europe’s only battery-grade copper foil production facility, and CATL, China’s largest battery manufacturer with 40% global market share, have entered a supply agreement for copper foil deliveries to CATL’s European battery manufacturing operations. The partnership will see Solus supplying copper foil produced at its Hungarian facility to support CATL’s expanding European production network, with both companies exploring potential collaboration on future product development initiatives.
The agreement represents CATL’s first partnership with a Korean copper foil supplier for its European operations and establishes Solus as a key component supplier for the Chinese battery manufacturer’s localization strategy in Europe.
CATL’s European Manufacturing Network
CATL operates a 14 gigawatt-hour annual capacity battery production facility in Erfurt, Germany, which commenced operations in 2022. The company is preparing to launch a substantially larger 100 gigawatt-hour facility in Debrecen, Hungary, with production scheduled to begin within 2025. The Hungarian plant represents one of Europe’s largest planned battery manufacturing facilities and forms part of CATL’s broader European expansion strategy.
The Chinese manufacturer has invested heavily in establishing localized production capabilities across Europe, with the German facility requiring approximately 1.8 billion euros ($1.95 billion) in capital investment. CATL’s European operations focus on producing lithium-ion battery cells for the region’s automotive sector, with the German plant alone targeting sufficient annual output for approximately 350,000 electric vehicles.
Solus Production Capabilities and Technology
Solus operates copper foil manufacturing facilities in Hungary with combined annual capacity of 38,000 tons, sufficient for producing components for approximately 1.5 million electric vehicle batteries. The company completed construction of its second Hungarian production line in November 2024, expanding regional capacity from 15,000 tons to current levels. Solus has developed manufacturing processes capable of producing copper foil with thickness as low as 4.5 micrometers, representing advanced technical capabilities in battery component manufacturing.
The Korean manufacturer is constructing additional production capacity in Quebec, Canada, scheduled for completion in 2026 with initial annual capacity of 25,000 tons. This facility will establish Solus as the first battery-grade copper foil producer in North America, complementing its European operations and supporting global electric vehicle supply chain requirements.
Market Impact and Financial Performance
Korean equity markets responded positively to the CATL partnership announcement, with Solus shares increasing 28% to reach 10,990 won ($8.40) during early trading on June 2. The stock maintained gains throughout the trading session, reflecting investor confidence in the strategic value of the partnership for Solus’s European operations and future growth prospects.
Solus reported first-quarter 2025 revenue of 157.6 billion won ($120.4 million), representing 30% year-over-year growth, though the company recorded operating losses of 15.3 billion won ($11.7 million) during the period. Management expects the company to achieve profitability in the fourth quarter of 2025, supported by expanding production capacity and new customer relationships including the CATL partnership.
Company Background and Market Context
Solus Advanced Materials operates as a specialized copper foil manufacturer with origins dating to 1960 through Circuit Foil Luxembourg, Europe’s first copper foil producer. The company developed the world’s first copper foil specifically designed for electric vehicle battery applications in 1996 and has since expanded into semiconductor and advanced technology applications. Solus supplies major technology companies including LG Energy Solution and global semiconductor manufacturers, establishing itself as a provider of specialized materials for advanced technology sectors.
CATL was established in 2011 as a spinoff from Amperex Technology Limited and has grown to become the world’s largest battery manufacturer. The company achieved 259.7 gigawatt-hours of global battery consumption volume in 2023, representing 36.8% market share and marking its seventh consecutive year as the industry leader. CATL operates extensive research and development programs and manufacturing facilities primarily in China, with recent expansion into European markets and planned North American operations.
Copper foil serves as a critical component in lithium-ion battery construction, functioning as the current collector for battery anodes and directly impacting energy density and charging performance. The global copper foil market for batteries has experienced rapid growth alongside electric vehicle adoption, with manufacturers focusing on developing thinner materials to improve battery efficiency while maintaining electrical conductivity and mechanical strength. Current market dynamics favor companies with localized production capabilities and advanced manufacturing technologies, as battery producers seek to reduce supply chain risks and minimize transportation costs.
