Defu Copper Foil Facility Targets AI and New Energy Demand Growth

Defu Technology

Defu copper foil facility plans will add another major layer of Chinese capacity for high-end electronic circuit materials as artificial intelligence, communications and energy transition sectors lift demand for specialised copper products. Defu Technology will invest 3.1bn yuan to build the project in Jiujiang, Jiangxi province.

Defu copper foil facility development will be focused on high-end AI electronic circuit copper foil. The project will be built in two phases, each with 25,000 t/yr of production capacity.

Defu copper foil facility timing has not yet been disclosed. But the investment signals continued confidence in downstream copper demand linked to AI infrastructure, 5G and 6G communications, low-earth-orbit satellites and new energy applications.

The company already had 175,000 t/yr of copper foil capacity at the end of 2025. Its output rose by 50% to 139,600t last year, while sales increased by 52% to 140,900t.

AI Infrastructure Adds New Demand Layer for Copper Foil

Copper foil is becoming more strategically important as electronics, batteries and data infrastructure demand higher-performance materials. AI systems require dense electronic circuits, high-speed signal transmission and reliable thermal and electrical performance.

Defu’s new project targets that shift. High-end electronic circuit copper foil is used in printed circuit boards and advanced electronics, where quality, thickness control and surface performance can determine reliability.

AI-related demand is still emerging, but it is already becoming relevant to copper markets. Some market participants estimate global copper demand from AI-related applications could reach around 350,000t in 2026.

That demand does not come only from data-centre power cables. It also includes circuit materials, cooling systems, electrical equipment, grid connections, transformers and backup power infrastructure.

Defu is therefore positioning itself closer to higher-value copper demand. The company is not simply expanding commodity capacity; it is targeting sectors where copper foil quality and customer qualification matter.

New Energy and Electronics Support Capacity Expansion

Energy transition sectors remain a key driver for electrolytic copper foil demand. Copper foil is widely used in lithium-ion batteries, especially as current collector material for anodes.

China’s copper foil operating rates improved significantly in 2025. Average electrolytic copper foil operating rates rose to 77.1%, up by 18.8 percentage points from a year earlier.

That recovery reflects stronger downstream demand from battery, electronics and new energy markets. It also helps explain why producers such as Defu are still adding capacity despite competition across China’s materials sector.

The planned Jiujiang facility will lift Defu’s ability to serve multiple growth markets. These include AI hardware, communications equipment, satellites, batteries and other high-end electronics.

However, expansion also raises competitive pressure. As more Chinese copper foil capacity enters the market, producers will need to differentiate through product quality, customer qualification and exposure to higher-margin applications.

For copper demand, the project reinforces a broader structural point. Electrification is no longer limited to EVs and grids. AI, satellites, communications and advanced electronics are adding new copper-intensive demand channels.

The Metalnomist Commentary

Defu’s investment shows that copper demand is becoming more technology-driven and more specialised. The strongest copper foil producers will be those that can move beyond volume growth and qualify into AI, battery and high-end electronics supply chains.

Lithium-Ion Battery Copper Foil Shipments Surge as Ultra-Thin Products Gain Share

Copper Foil

Lithium-ion battery copper foil shipments rose sharply in 2025 as global battery production expanded and manufacturers shifted toward thinner materials to reduce copper costs. Global shipments reached 1.302mn t, up 41.7% from 2024, according to Chinese research institute EV Tank.

Lithium-ion battery copper foil demand remains closely tied to electric vehicle and energy storage growth. Copper foil is a key current collector in lithium-ion batteries, making it essential to cell performance, energy density and manufacturing cost.

Lithium-ion battery copper foil shipments were dominated by China, which accounted for 82.9% of global deliveries in 2025. EV Tank expects global shipments to reach 2.615mn t by 2030, implying continued expansion as battery output scales.

The product mix changed quickly during the year. The share of 8μm foil declined, while 6μm remained the mainstream product and accounted for more than 70% of total shipments.

Ultra-Thin Foil Gains Momentum on Copper Cost Pressure

Ultra-thin copper foil gained share as battery producers looked for ways to reduce copper input costs. Persistently high global copper prices pushed cell manufacturers to use thinner foil while maintaining battery performance.

The combined share of 5μm and 4.5μm ultra-thin foil rose to 24% in 2025. This is a major shift for a material category that requires tighter production control, better surface quality and stronger consistency.

Thinner copper foil can help reduce battery weight and improve energy density. It also lowers the amount of copper used per cell, which becomes increasingly important when copper prices remain elevated.

EV Tank expects 5μm and thinner foil to become a key material for high-end batteries. This reflects the industry’s move toward lighter, higher-energy-density cell designs.

However, thinner foil also raises manufacturing difficulty. Producers must control pinholes, tensile strength, elongation, surface roughness and coating compatibility more precisely.

That technical barrier could separate higher-end suppliers from lower-cost producers. As battery customers shift toward thinner grades, qualification and process reliability will become more important than simple capacity.

China Leads Supply as Competition Intensifies

China’s 82.9% share of global shipments shows its dominant role in battery copper foil supply. The country has built large-scale capacity around its lithium-ion battery ecosystem, supported by domestic EV, energy storage and cell manufacturing growth.

Competition intensified in 2025 as the market recovered and producers brought earlier-built capacity on line. This created a more fluid ranking among suppliers.

Longdian Wason ranked first with a 12.2% market share. Huachuang New Material followed after capacity ramp-ups lifted output and sales.

Defu Technology and Jiayuan Technology ranked third and fourth, respectively. Seven companies in the top 10 changed positions during the year, showing how quickly capacity, customer access and product mix are reshaping the sector.

Battery makers also increased procurement from second-tier suppliers to improve supply stability. This suggests buyers are trying to diversify supplier bases rather than rely only on leading producers.

For copper markets, the trend is strategically important. Battery copper foil growth creates a direct link between copper demand and battery technology. But the move toward ultra-thin foil also means battery growth will not translate into copper demand on a simple one-to-one basis.

The sector is therefore entering a more technical phase. Volume growth remains strong, but material intensity, foil thickness, supplier qualification and copper price pressure will all shape future demand.

The Metalnomist Commentary

The copper foil market shows how battery growth can lift copper demand while also forcing material thrift. High copper prices are pushing battery makers toward thinner foil, making technology and process control as important as raw capacity.