Breakthroughs in lithium battery copper foil technology and rapid market expansion are accelerating. Recently, Xinborui Technology, based in the Yingtan High-Tech Zone in Jiangxi, achieved China’s first stable mass production of ultra-high-strength copper foil with a tensile strength of 890 MPa and a thickness of just 3.5 μm. The product significantly enhances the structural stability and safety of lithium batteries, aligning with the core demands of new energy vehicles for lightweight and high-safety battery solutions.
On the market side, copper foil producers are seeing rising order volumes and higher operating rates. In early March, Tongguan Copper Foil announced that it will continue supplying lithium battery copper foil to Gotion High-Tech in 2026, with total contract value expected to reach RMB 928 million. In January 2026 alone, contracts amounted to RMB 55.99 million, following total sales of RMB 437 million to Gotion High-Tech from January to November 2025.
Capacity utilization in the lithium battery copper foil sector remains strong despite the traditional off-season. Industry data shows that operating rates reached 86.33% in February 2026, up 19.49 percentage points year-on-year, and are expected to rise further to 92.46% in March, marking a 23.08 percentage point increase.
From a technological perspective, the trend toward ultra-thin copper foil is becoming a key competitive focus. Demand for high-value products such as 4.5 μm and 5 μm foils continues to grow. In 2025, copper foil with thicknesses of 5 μm or less accounted for 25% of the market, and this share is expected to exceed 50% by 2026. Meanwhile, with the rapid advancement of solid-state batteries, composite copper foil is entering a critical phase of industrialization.
Rising Prices Signal Industry Recovery
The lithium battery industry in 2026 is showing resilience, with a “strong off-season” and a notable recovery in March production schedules. Rising upstream raw material prices, including lithium carbonate, are driving a broader rebound across the value chain. Analysts note that inflationary expectations for battery materials are strengthening, giving copper foil producers greater pricing power.
By mid-March, spot prices for 4.5 μm ultra-thin lithium battery copper foil reached RMB 130,000 per ton, commanding premium pricing. Standard 6 μm and 8 μm products were priced at RMB 119,000 and RMB 118,000 per ton, respectively. The market imbalance has shifted from overall oversupply to structural shortages, with technological barriers supporting price floors for high-end products.
Since 2025, the copper foil market has shown clear improvement. Industry reports highlight a shift toward higher-end product structures, supported by strong demand from new energy vehicles and energy storage sectors. Leading domestic producers have steadily increased capacity utilization, improving profitability.
Financial results reflect this recovery. Jiayuan Technology reported revenue of RMB 9.646 billion in 2025, up 47.89% year-on-year, and returned to profitability with net income of RMB 59.12 million, compared to a loss the previous year. Tongguan Copper Foil and Defu Technology also reported significant improvements, driven by increased sales of high-value-added products and optimized product mix.
However, structural challenges remain. While leading manufacturers strengthen their competitive advantages through technological upgrades, smaller players face pressure from high raw material costs and limited upgrading capabilities, leaving low-end overcapacity unresolved.
Composite Copper Foil Gains Momentum
The global lithium battery copper foil industry is entering a critical phase of technological upgrading. Composite copper foil, as a next-generation current collector, uses a polymer substrate coated with copper layers, significantly reducing copper consumption while improving battery safety. This innovation creates new growth potential beyond traditional copper foil applications.
With copper prices rising by over 100% in recent years—from below RMB 50,000 per ton in 2020 to over RMB 100,000 per ton in 2026—the cost advantage of composite copper foil is becoming increasingly evident.
As next-generation technologies such as solid-state batteries accelerate commercialization, the industrialization of composite copper foil is gaining momentum. PET/PP-based composite foils, offering advantages in lightweight design, safety, and cost efficiency, have already been incorporated into supply chains by leading companies such as CATL and BYD, and are expected to enter a large-scale substitution cycle in the coming years.
According to industry forecasts, global demand for composite copper foil could reach 25.6 billion square meters by 2030, corresponding to a market size of approximately RMB 83.1 billion under neutral assumptions, and up to RMB 124.6 billion under optimistic scenarios.
The copper foil industry is rapidly evolving along the path of material performance upgrades, surging downstream demand, and accelerated commercialization of new technologies. As demand continues to expand, the sector is poised for substantial growth, providing critical material support for the high-quality development of the new energy industry.
Source： XueQiu