SKC, a chemical unit of SK Group, said on June 13 it has decided to acquire KCF Technologies, the world’s top producer of copper foil for lithium-ion batteries, in a bid to diversify its business portfolio.

The South Korean firm said it will buy a 100 percent stake in KCFT, currently owned by Kohlberg Kravis Roberts & Co, a US-based private equity fund, for 1.2 trillion won ($1 billion).

“Considering its growth, profitability and market size, we decided to select copper foil, a core material for electric vehicle batteries, as our new growth engine,” SKC said in a regulatory filing.

KCFT, based in Anyang, just south of Seoul, was the top player in the global cooper foil market in 2018, with a 15 percent share.

Its major customers include EV battery makers LG Chem Inc., Samsung SDI, and Panasonic. Copper foil is used as the electrode collectors for anodes in EV batteries.

SKC, whose business area includes producing polyester film as well as materials for semiconductors and cosmetics, said it expects KCFT to be its new growth engine in the rising EV market.

By Ram Garikipati and newswires (ram@heraldcorp.com)