Accelerating North American Expansion: Volta Energy Solutions Canada Secures 'Supply Chain Resilience Fund' for Battery Copper Foil Plant
Accelerating North American Expansion: Volta Energy Solutions Canada Secures 'Supply Chain Resilience Fund' for Battery Copper Foil Plant |
| [15-December-2025] |
GRANBY, QC, Dec. 15, 2025 /CNW/ -- Volta Energy Solutions Canada ("VESC") announced on the 15th that it has been selected as a "Leading Company Supply Chain Resilience," under a program hosted by the Korean Ministry of Economy and Finance and will receive the "Supply Chain Resilience Fund."
Volta Energy Solutions Canada is an overseas subsidiary of Solus Advanced Materials, a Korean company engaged in advanced materials businesses for the electric vehicle and display industries. VESC is expected to receive approximately USD 140 million (Approximately CAD 194 million) of supply chain resilience fund starting at the end of this year to support the construction of battery copper foil production facility currently underway in Quebec, Canada. The Supply Chain Resilience Fund is a government-wide policy fund established to address global supply chain risks and supports the stable securing of overseas procurement capabilities and production bases for key materials pursuant to the "Framework Act on Supply Chain Resilience Support for Economic Security." Launched in the second half of 2024, the fund aims to strengthen supply chains for key national industries, such as secondary batteries, automobiles, and semiconductors, and foster new industries. It is managed by the Export-Import Bank of Korea. In addition to securing the Supply Chain Resilience Fund, VESC has also raised additional funding for its Canadian battery copper foil plant, accelerating its expansion into the North American market. Along with the USD 140 million (Approximately CAD 194 million) in Supply Chain Resilience Fund, VESC has secured further financing through a syndicated loan from the Export-Import Bank of Korea and the Korea Development Bank, which totals USD 300 million (Approximately CAD 416 million) if combined with existing financing from the Korea Trade Insurance Corporation and Export Development Canada (EDC). The production facility is expected to begin operations after completion in the second half of 2026. Production capacity will initially be 25,000 tons per year, gradually expanding to a maximum of 63,000 tons depending on market demand. Mass production is expected to begin in 2027. This achievement enables VESC to secure production stability at its Canadian battery copper foil plant and further enhance its facilities and processes to meet the North American market demand. The production facility, currently under construction in Granby, Quebec, is scheduled for completion and commencement of operation in the second half of 2026. It will initially produce 25,000 tons per year, with plans to gradually expand capacity to a maximum of 63,000 tons depending on market demand. Mass production is expected to begin in 2027. The parent company, Solus Advanced Materials has taken a leading role among Korea's major secondary battery materials companies in entering overseas markets, joining the ranks of the global electric vehicle supply chain. In 2019, the company shipped its first battery copper foil from its Hungarian plant, Europe's only battery copper foil production base, and in 2022, broke ground on its Canadian plant, becoming the first Korean company to enter the North American market. Currently, Solus Advanced Materials is virtually the only company with mass-production facilities for battery copper foil in both Europe and North America. This localized production base gives the company a competitive edge in areas such as enhanced responsiveness to regional supply chain regulations, expedited product approval processes, and long-term supply stability, and also holds significance for securing the global supply chain of the domestic battery industry. In particular, copper, a key raw material for battery copper foil, has recently been designated as a strategic material in major countries, including North America, further highlighting its importance. Battery companies are increasingly recognizing the need to secure stable local suppliers to mitigate supply chain risks. VESC's plant is a strategic production base suited to this market environment and is expected to play a crucial role in supporting supply stability for Korean and global battery companies operating in North America. Furthermore, with the surge in demand for Energy Storage System (ESS), the North American market is experiencing a rapid increase in demand for ESS-related battery copper foil, from which the Canadian plant is expected to directly benefit. Thanks to market growth and increased orders from key customers, the company expects that the share of ESS-related sales in its total battery copper foil revenue, currently less than 5%, will rise to approximately 20% next year. An official from VESC noted "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." About Volta Energy Solutions SOURCE Volta Energy Solutions Canada | ||
Company Codes: Korea:336370 |
