SK Nexilis Co., the world’s largest copper foil maker and a key player in the South Korean battery materials sector, announced on Monday that it has been granted a substantial $133 million subsidy by the Polish government, as reported by KED Global. This funding is provided under the European Union’s Temporary Crisis and Transition Framework (TCTF) program, a financial support initiative designed to ease regulations and support industries driving net-zero CO2 emissions. SK Nexilis is the first South Korean battery materials company to receive a subsidy under this program and has also secured the largest single payout from the Polish government to date.

The company intends to use this financial support to collaborate with the Polish government in building a new copper foil manufacturing facility in Stalowa Wola, located in southeastern Poland. The new plant will focus on producing copper foil, a crucial material used in the manufacturing of electric vehicle (EV) batteries. This development aligns with SK Nexilis’ global strategy to meet the rising demand for battery materials driven by the growing electric vehicle market. Copper foil is essential for the production of batteries used in electric vehicles, making it a key material in the transition toward greener and more sustainable transportation solutions.

The European Union introduced the TCTF program in March 2023 as part of its broader strategy to support companies involved in industries essential to achieving net-zero CO2 emissions. The TCTF program provides financial support and relaxes certain regulatory requirements for companies that play a significant role in the green transition, including those involved in the production of electric vehicles, batteries, and other clean energy technologies. By offering such subsidies, the EU aims to accelerate the adoption of green technologies and foster innovation in industries crucial to reducing the carbon footprint of Europe’s economy.

SK Nexilis’ receipt of the $133 million subsidy is a significant milestone for the company, highlighting its growing importance in the global supply chain for battery materials. The establishment of a new copper foil manufacturing facility in Poland will not only enhance SK Nexilis’ production capacity but also support Europe’s ambition to become a leader in clean energy technologies and sustainable transportation. The new facility will contribute to Europe’s efforts to reduce its dependence on non-renewable resources and promote the development of a green economy, while also addressing the region’s growing demand for electric vehicles and energy storage solutions.

This subsidy further underscores the European Union’s commitment to supporting the transition to a low-carbon economy by investing in sectors that reduce environmental impact. By supporting companies like SK Nexilis, which are vital to the supply of key materials for electric vehicle production, the EU is reinforcing its strategy to reduce its reliance on fossil fuels and promote sustainable practices across industries. With the construction of the new plant, SK Nexilis is poised to play a critical role in Europe’s green energy future, ensuring a steady supply of high-quality copper foil for the rapidly expanding EV battery market. This investment marks a significant step toward achieving the EU’s climate goals and supporting the transition to cleaner, more sustainable energy sources across the continent.