Far East high-precision ultra-thin copper foil supply CATL ushered in rapid growth

In recent years, China's new energy vehicle market has developed rapidly and has become the world's largest electric vehicle manufacturing and user country
.
With the continuous transformation of vehicle electrification, intelligence, and self-driving, the new energy vehicle industry chain has also changed and expanded, and new models are being developed
whether it is upstream components or downstream manufacturing and production.

Take the pulse of the market trend and lay out
in advance.
As the core component of new energy vehicles, the performance of lithium batteries is directly affected by the thickness of high-precision ultra-thin copper foil, and Far East Smart Energy Co.
, Ltd.
(hereinafter referred to as: Far East Stock Code: 600869) has already laid out the lithium battery industry chain and has vigorously developed high-precision copper foil projects
over the years.

The production and sales of the new energy automobile industry are booming, and the demand for upstream copper foil is strong
.
According to data released by the China Association of Automobile Manufacturers, the total production and sales of new energy vehicles from January to December 2020 were 1.
366 million units and 1.
367 million units, respectively, up 7.
5% and 10.
9%
y/y.
Under the background of the spread of the new crown pneumonia epidemic around the world, China's new energy vehicle production and sales have risen against the trend, ranking first
in the world for six consecutive years.

Under the background of the rapid growth of China's new energy vehicle production and sales, according to the data of the Lithium Battery Research Institute (GGII), China's power battery shipments and installed capacity are increasing
year by year.
GGII expects that by 2025, China's power battery shipments will reach 385.
2GWh
.
High-precision ultra-thin copper foil, as a lithium-ion battery anode current collector material, is one of the main materials of lithium batteries, therefore, the growth of power battery shipments and installed capacity will continue to increase the market demand
for copper foil.

Lithium battery copper foil accounts for about 5%-8% in the battery cost structure, and its price fluctuations have little impact on battery costs, but compared with 8 micron lithium battery copper foil, the use of 6 micron and 4.
5 micron lithium battery copper foil can increase the energy density of lithium battery by 5% and 9% respectively, which is naturally more in line with the requirements
of lithium battery copper foil development in high density, low profile, ultra-light thinness, high tensile strength, high elongation and other directions.

Successful trial production of 4.
5 micron ultra-thin copper foil leading technology
.
Thinning is the development direction of high-end copper foil, making copper foil thinner, not only can improve the cruising range of lithium batteries, but also can realize the fast charging and discharging functions of lithium batteries, which is one of the
core areas of global new energy battery competition.
The first company to have the bulk supply capacity of 4.
5 micron copper foil is undoubtedly more likely to take advantage of the
industry's dividends.

The diameter of a human hair is about 100 microns, and the thickness of 6 microns copper foil is only equivalent to 1/16 of the diameter of a human hair, and the copper foil of 4.
5 microns is only equivalent to 1/21
of the diameter of a human hair.
Even 6 micron copper foil needs to be able to stretch nearly 10,000 meters, and it must be consistent, wrinkle-free and crack-free
.
These challenges have discouraged many copper foil manufacturing companies, and related technologies have long been monopolized
by overseas companies such as the United States, Japan, and South Korea.

Lithium battery copper foil production line

To be able to produce such thin high-precision copper foil, the machinery is secondary
.
Industry insiders pointed out that the manufacturing difficulties of 4.
5 micron ultra-thin copper foil lie in physical property control, equipment accuracy and stability, and production process technology control
.

At the equipment level, the core equipment of the Far East high-precision copper foil production line is cathode rollers, which are purchased from Japan; At the technical level, it has mastered a number of core technologies
of lithium battery copper foil, such as ultra-thin lithium battery copper foil manufacturing technology, additive application technology, electrolyte purification technology, copper foil anti-oxidation technology and copper foil slitting technology.
With cutting-edge equipment and strong technical strength, Far East has become one of the leading technology enterprises in the industry that has successfully trial-produced 4.
5 micron ultra-thin copper foil, with a single roll length of 20,000 meters, and its key indicators such as tensile strength and elongation have reached the advanced level
.

At present, Far East Shares' 6 micron copper foil products have been batched to CATL (300750.
SZ), 4.
5 micron copper foil products have been supplied in bulk, and the more technical 4 micron ultra-thin copper foil has also been developed
.

Keep up with market development and expand production capacity
with hundreds of millions of investments.
In 2020, the total battery capacity of new energy vehicles in the world will be 176GWh, and the demand for lithium battery copper foil will be about 140,000 tons; By 2025, the total battery capacity of new energy vehicles in the world is expected to reach 900GWh, requiring about 700,000 tons of lithium battery copper foil, and the growth is expected to reach 500%.

In the future, the power battery market will become the main application market of the global copper foil market
.

Relying on strong internal experience and technical support, Far East Holdings keeps a close eye on the market, aims at demand, and continues to promote the strategic planning project
of high-precision ultra-thin lithium battery copper foil.

Lithium battery copper foil production workshop

In addition to the 6-micron high-end ultra-thin lithium battery copper foil project that has been put into operation in 2017, Far East is accelerating the construction of lithium battery copper foil production capacity, and the total production capacity of the second phase of the 4.
5 micron ultra-thin lithium battery copper foil project will reach 15,000 tons
.

In the next stage, Far East will focus on expanding the sales of high-end lithium-ion copper foil with high gross profit and extremely thin margin, and continue to invest in research and development in high-resistance and
high-extension copper foil.
In addition, Far East Co.
, Ltd.
plans to invest in the construction of Far East Intelligent Industrial Park in Nanxi Economic Development Zone, Sanjiang New Area, Yibin, Sichuan Province, with a total investment of about 6 billion yuan, and one of the construction contents is an annual output of 50,000
tons of high-precision copper foil.

At present, a new round of global scientific and technological revolution and industrial transformation is booming, and new energy vehicles have become the main direction of the transformation and development of the global automotive industry and an important engine
for promoting sustained economic growth.

In the face of the wave of development of the times, Far East Horizon will adhere to the innovation drive, constantly broaden and deepen its "moat", consolidate the first-mover advantage into its core competitiveness, and help China's new energy automobile industry lead the world
with constantly innovative products.
(Chu Mengqian)