Korean company Lotte Energy Materials Corporation has been chosen by StarPlus Energy, the joint venture between Stellantis and Samsung SDI, as the exclusive supplier of copper foil for its new gigafactory in the United States.
The new agreement between Stellantis and Lotte Energy on the supply of copper for batteries
As we have already discussed in these days, Stellantis Group is not experiencing some of its best times due to issues with U.S. unions and with the drastic drop in profits that has generated concern among shareholders. Obviously, however, not everything is negative, and the company is equally continuing its growth paths to keep up with the fast-moving times.
Just in reference to pursuing its goals, Stellantis in a strategic move to accelerate the transition to electrification, recently entered into a partnership with Samsung SDI to build two gigafactories in the United States. These mega-factories will be dedicated to the production of lithium-ion batteries, which is the part that plays the most important role for the next electric vehicles we will see on the market.
The recent agreement of StarPlus Energy and Lotte Energy Materials
The joint venture between Stellantis and Samsung, called StarPlus Energy, recently signed an agreement with Lotte Energy Materials Corporation. This is a South Korean company that is a leading manufacturer of high-purity copper foils, therefore, a truly valuable partnership. These sheets, known as “elecfoil,” play a really essential role during the battery manufacturing process, so that the cars on which they are to be mounted can be guaranteed very high performance and, above all, safety.
Stellantis, made the significant choice to retain Lotte Energy as the sole and exclusive supplier for the procurement of elec foil for batteries that are manufactured in the United States. This decision, stems from the result that was obtained following several rigorous product quality tests, which lasted more than a year overall. During this time, the South Korean company has demonstrated that it has the appropriate technology and experience to meet the rather high standards that have been demanded by Stellantis and Samsung.
The Gifgafactories in Indiana and the investments
The two gigafactories, which are currently under construction in the state of Indiana, are growing steadily due to the substantial total investment of $6.4 billion. Both facilities will have an organizational capacity of 33 GWh, the first is slated to come on line during the first three months of the year 2025. While the second, which was started later, will be ready for operation from 2027. These two facilities in the coming years will be decisive for the future of electric mobility in Stellantis but also globally. In fact, the automotive group will be able to offer millions of electric vehicles to the market during the coming years.
Coming back into this recent deal between them, we know that the supply of copper is seen as an essential element in the production of lithium-ion batteries. The high-purity copper sheets, are used as current conductors inside the batteries. Through this process, it helps to improve energy density, cycle life, and cell safety.
The functioning of copper for lithium batteries
But exactly what is the way copper that is used for lithium batteries works? Typically, copper is used as a current collector at the negative electrode. The characteristics of this material are its high electrical conductivity, which makes it possible to transport the electrons that are generated during the chemical reaction process inside the battery in a completely effective manner. In addition, copper is very useful in this field because it has very good workability, and it is very resistant to corrosion and therefore long-lasting. To top it off, compared to other metals with similar characteristics, copper is among the most efficient but also the cheapest, a detail that makes it perfect for all those companies that have a strong need to use it in large quantities.
While the excitement about the continued growth of the electric car market around the world is increasing, the industry is still grappling with several issues that need to be resolved. Indeed, a significant one in the last few years is the fairly incisive increase in raw material costs, coupled with the strong need to be able to guarantee a supply of batteries that can be completely stable for the coming years. In precisely these aspects, the cooperation put together by Stellantis, Samsung, and Lotte Energy is a defining moment to try together to overcome these major obstacles and accelerate this transition to zero-emission vehicles more and more.