Lithium Battery Copper Foil Supply Chain Under Strain
The lithium battery copper foil supply chain is under scrutiny as demand outpaces production. Copper foil, an essential component of lithium batteries, accounts for only a small share of costs but is critical due to its thinness and high quality requirements. While the current gap between demand and stable supply is manageable, it may worsen in 2027.
China's lithium battery copper foil demand in 2026 is approximately 1.37 million mt, while actual supply stands at around 1.35 million mt, leaving a 20,000 mt shortfall. This gap corresponds to the copper foil raw material needed for about 50 GWh of lithium battery cells.
However, this shortage will not significantly limit battery production increases in 2026 as enterprises can still buffer through inventory, adding suppliers, and adjusting production schedules. The real test comes in 2027 when pressure is expected to rise due to a widening gap between demand and supply.