Quebec battery foil plant gets green light with government backing

Volta Energy Solutions Canada (VESC) announced on December 15 that the Korean Ministry of Economy and Finance has selected it as a "Leading Company Supply Chain Resilience" and will receive the "Supply Chain Resilience Fund." VESC, an overseas subsidiary of Korean company Solus Advanced Materials, will receive approximately USD 140 million (CAD 194 million) from the fund starting late this year. The money will support the construction of a battery copper foil production facility in Quebec.

The Korean government established the Supply Chain Resilience Fund to address global supply chain risks and support stable overseas procurement of key materials. Launched in the second half of 2024, the fund aims to strengthen supply chains for key national industries and foster new ones. The Export-Import Bank of Korea manages the fund. VESC has also secured additional funding for its Canadian plant through a syndicated loan from the Export-Import Bank of Korea and the Korea Development Bank.

Combined with existing financing from the Korea Trade Insurance Corporation and Export Development Canada (EDC), the total funding reaches USD 300 million (CAD 416 million). The production facility in Granby, Quebec, will begin operations in the second half of 2026. It will initially produce 25,000 tons per year, with plans to expand to 63,000 tons based on market demand. Mass production is expected to start in 2027. Solus Advanced Materials has led Korean battery materials companies in entering overseas markets. In 2019, it began shipping battery copper foil from its Hungarian plant, Europe's only such production base. In 2022, it broke ground on its Canadian plant, becoming the first Korean company to enter the North American market. Solus Advanced Materials is currently the only company with mass-production facilities for battery copper foil in both Europe and North America.

This gives the company advantages in responding to regional supply chain regulations, expediting product approvals, and ensuring long-term supply stability. The North American market is experiencing increased demand for Energy Storage System (ESS)-related battery copper foil, which is expected to benefit the Canadian plant. The company anticipates ESS-related sales to rise from less than 5% to approximately 20% of its total battery copper foil revenue next year.

A VESC official stated: "Amid a challenging investment environment, it is highly meaningful that we have secured a stable foundation for entering the North American market, thanks to the full trust and support of the Korean government and major government-backed financial institutions, including the Export-Import Bank of Korea, the Korea Trade Insurance Corporation, the Korea Development Bank, and Export Development Canada."

He added, "Based on our high value-added products and technological competitiveness, we will strengthen our competitiveness in major global markets and contribute to stabilizing the supply chain of the North American electric vehicle industry." Volta Energy Solutions (VES), an overseas subsidiary of Solus Advanced Materials, oversees the company's global battery copper foil business. VES established its first battery copper foil plant in Europe in 2018 and created Volta Energy Solutions Canada in Quebec in 2022 to enter the North American market. Through VESC's plant in Quebec, the company aims to strengthen its position in the North American EV market and respond to market demand.

More information is posted at www.VoltaEnergy.ca.