LG, SK move to resume transactions

LG, SK move to resume transactions

최초입력 2025.07.25 09:56:37

(SK nexilis)

South Korea’s LG Energy Solution Ltd. (LGES), and SK nexilis Co. are moving to sign a large-scale copper foil supply contract, restoring a relationship that was strained due to past lawsuits and aligning with the battery supply chain’s “de-China” trend.
This development follows SK ie technology Co. (SKIET)’s April 2025 agreement to supply LGES with 110 billion won ($80.12 million) worth of separators, signaling a normalization of ties between LG and SK’s battery affiliates.
According to sources from the conglomerate circle on Thursday, LGES, the pure-play vehicle battery maker under LG Group, is negotiating a major supply deal with SK nexilis, SK Group’s copper foil manufacturing subsidiary.
If the deal is finalized, copper foil produced at SK nexilis’ plants in Malaysia and Jeongeup, North Jeolla Province, will be supplied to LGES’ North American facilities.
The supply contract is expected to run for 5 to 6 years with an estimated total value of up to 4 trillion won.
LGES is likely to use SK nexilis’ copper foil at its new U.S. plant, which is scheduled to start operations as early as the second half of 2025, sources said.
Copper foil, a thin copper sheet placed under the anode material, is a key component accounting for about 10 percent of a battery cell’s cost.
This deal is expected to enable LGES to further secure a stable, non-China supply chain in North America and SK nexilis to reverse its declining performance since 2023, creating a win-win scenario for both companies.
Sources also view this development as a signal that LG and SK are mending their past conflicts.
LGES and SK on Co. engaged in a high-profile legal dispute at the U.S. International Trade Commission (ITC) in 2019 over battery technology leaks and patent infringement, which led to a halt in all battery materials transactions between the groups.
Although the lawsuit ended in 2021 with SK paying a 2 trillion won settlement, business dealings between them remained essentially frozen.
The turning point came with the restructuring of the U.S. supply chain. The “de-China” policy within the North American battery sector intensified under both the Biden administration and the second Trump administration in the United States.
LGES was also compelled to reduce its reliance on Chinese components and materials to meet demands from customers such as U.S.-based General Motors Co. (GM). SK nexilis re-emerged as a key candidate as LGES adjusted its ties with Chinese copper foil suppliers and sought alternative sources.
SK nexilis is the world’s largest copper foil producer outside China, with an annual production capacity exceeding 100,000 tons via its Malaysia and Jeongeup plants.
LG and SK are likely to restore their cooperative relationship to past levels if this deal is finalized, an industry insider said.
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LG, SK move to resume transactions

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