Toyota Tsusho acquired a minority stake in SK Nexilis Malaysia for $110 million (₩150 billion), marking the Japanese trading house’s latest move to secure battery materials supply chains as electric vehicle production accelerates.
The investment gives Toyota Tsusho access to SK Nexilis’ Malaysian facility, which has an annual production capacity of 57,000 tons and utilizes renewable hydroelectric power. SKC, the South Korean parent company, announced the deal during a ceremony at its Seoul headquarters on Tuesday.
The transaction extends a partnership that began in 2023 when the companies signed a memorandum of understanding for North American copper foil production. Toyota Tsusho plans to supply the Malaysian-produced copper foil to battery manufacturers primarily in Japan and North America.
The copper foil market for lithium batteries reached $10.07 billion in 2024 and analysts project growth to $49.65 billion by 2033, driven by expanding EV adoption. However, industry observers note that supply constraints are expected to ease in the second half of 2023 as new production capacity comes online, potentially leading to pricing pressure.
The Malaysian investment positions Toyota Tsusho to compete with Chinese suppliers who currently dominate global copper foil production. The facility will support Toyota’s planned battery factory in the United States, which is under construction with Toyota Motor.
