China Copper Foil Industry Sees Surging Demand and Prices
The Chinese copper foil industry has experienced a significant surge in volume and prices, according to the semi-annual report of publicly listed firms. The industry's recovery is driven by the combined demand from growing electric vehicle (NEV) penetration rates, increasing renewable energy storage systems (ESS) installations, and accelerating AI computing infrastructure construction.
The ESS sector is a major driver of lithium battery copper foil demand, with global consumption expected to reach 540,000 mt in 2026, representing an 80% year-over-year growth rate. The industry's supply-demand pattern has tightened, leading to rising processing fees and undersupply of high-end copper foil products.
The capacity utilization rate for the industry has exceeded 90%, with companies such as Nuode, Jiayuan Technology, Defu Technology, Tongguan Copper Foil, and Zhongyi Technology achieving significant revenue and profit growth. The industry's recovery is broad-based, with diversified enterprises also showing improvement.
The outlook remains positive, with the demand for high-end copper foil products expected to continue growing due to the increasing adoption of AI computing infrastructure and ESS installations.