South Korean energy and chemical company SKC will acquire copper foil company KCF Technologies from private equity major KKR for $1 billion. The purchase of KCF, whose copper foil forms the core of EV batteries, is the latest indicator of South Korea’s rapid adoption of electric vehicles.
- KKR acquired KCF through a leveraged buyout in March 2018 for an undisclosed amount, according to PitchBook.
- With 20,000 tons of annual output, KCF makes about 15% of the world’s copper foil, according to a Yonhap report. SKC said it plans to triple KCF’s copper foil capacity by 2022.
- Electric vehicles prices are expected to be line with gasoline-powered cars, thanks to falling battery costs, by the middle of the next decade, BloombergNEF has said. It also predicts that more than half of South Korea’s passenger cars sold will be electric by 2040.
- Karma Takeaway: KCF’s increased copper foil supply may drive down EV battery prices, which is seen as key to boosting EV sales. South Korean’s EV market is the world’s fifth largest, and the government has made it a goal to boost the number of electric vehicles on the country’s roads to 430,000 by 2022. , and electric vehicles sales will surpass Internal combustion vehicle in 2040 globally.