SKC : SK nexilis will be the exclusive supplier of high-quality copper foil to VARTA, Germany.

· SK nexilis will be the sole supplier of copper foil to VARTA, an established leader in the European battery market, needed for its first mass production project.

· Following the contract with Northvolt in February, SK nexilis has established its position as Europe's only high-quality copper foil supplier by entering into business with a major European EV battery manufacturer.

SK nexilis, SKC's EV battery copper foil production subsidiary, signed a supply agreement with Germany's battery manufacturer VARTA accelerating its expansion in the European market.

SK nexilis and VARTA have agreed on an exclusive supply of the copper foil required for VARTA'S first EV battery mass production project. In addition, they are negotiating a long-term supply contract of over five years to meet additional demand resulting from VARTA's future expansion. Details of the supply scale under the contract will not be disclosed according to the agreement between the two companies.

Established in 1887, VARTA has traditionally led the primary battery market. With the recent investments of more than 300 million euros from the German Government and other entities, VARTA is seeking to expand its business to EV batteries. Production is underway at a pilot line located in Baden-Württemberg, Germany. This agreement will allow VARTA to source high-quality copper foil from SK nexilis, enabling it to move forward with stable mass production.

Following the signing of a long-term supply contract in February this year with Northvolt, the largest EV battery manufacturer in Europe, SK nexilis signed an exclusive supply agreement with VARTA. These agreements will allow SK nexilis to continuously expand its share of the European copper foil market in the mid- to long-term through the copper foil to be manufactured at the copper foil plant in Poland currently under construction. Europe is a fast-growing market based on the intra-region supply chain development policy for EV components and materials. SK nexilis plans to sell most of its production under mid- to long-term contracts.

SK nexilis will supply VARTA high-quality copper foil with a tensile strength 40% higher than standard products. The rapid growth of the EV market is driving demand for high-quality copper foil as global EV battery manufacturers seek to maximize productivity and ensure manufacturing stability. This is because copper foil products with enhanced strength and heat resistance are essential to withstand the high-speed and harsh manufacturing process.

SK nexilis has successfully won contracts one after the other, being the only manufacturer capable of supplying such high-quality copper foil locally in Europe. Furthermore, it is continuously expanding its high-quality copper foil lineup through consistent research and development.

An SK nexilis executive said, "We are very encouraged by the continued expansion of SK nexilis' differentiated high-quality, high-strength copper foil supply to global clients," and added, "We will continue to strive in improving our clients' productivity and developing the South Korean EV materials industry." [End of document]