CMB Securities: Lithium battery copper foil is expected to see differentiation, and the domestic substitution of high-end copper foil is accelerating.

CICC released a research report stating that the lithium battery copper foil industry has experienced a significant oversupply in the past two years, leading to a sharp decline in profitability, with almost the entire industry expected to be incurring losses by 2024. The copper foil industry itself presents characteristics such as heavy assets, high proportion of raw materials, and a relatively diversified supply structure. Under pressure, copper foil companies with stronger comprehensive capabilities are accelerating the expansion into new products and downstream areas. In terms of lithium battery copper foil, further efforts are being made to develop towards lightweight and high-strength properties, coordinating with the introduction of new silicon-carbon materials to produce high-tensile products and introducing porous copper foils, atomized copper foils, and core foils in connection with solid-state batteries, highlighting the potential differentiation and specialization of high-end lithium battery products. On the other hand, the strong demand for AI and computing power, as well as advanced packaging, is driving an urgent need for high voltage low profile (HVLP) and carrier board copper foils, prompting copper foil companies to accelerate their localization efforts.