A research report from East Money Securities states that lithium battery copper foil is facing a supply shortage. Chen Yubi, General Manager of Nuode Investment Co.,Ltd., previously indicated that from Q4 2023 through 2024, the anode current collector copper foil industry was largely operating at a loss. A recovery began in 2025, and by Q4 2025, the entire lithium battery copper foil industry was experiencing exceptionally high order volumes. In recent years, the rapid application and development of technologies like AI and 5G have driven demand for high-end electronic circuit copper foil, a key conductive material for premium PCBs. This necessitates continuous performance improvements, with industry trends focusing on thinner layers, high-temperature elongation, ductility, and high peel strength. The market for electronic circuit copper foil products is currently characterized by supply falling short of demand, with reliance primarily on imports. Domestic manufacturers are accelerating localization efforts.
Key points from East Money Securities are as follows:
Event: In December 2025, Nuode Investment Co.,Ltd. signed a copper foil supply agreement with CALB for 2026-2028, with a total supply volume of 373,000 tons over the three years. This order volume already exceeds the company's current peak production capacity. In November 2025, Contemporary Amperex Technology Co., Limited signed a supply agreement for anode current collector materials with Jia Yuan Technology for 2026-2028. Jia Yuan Technology is required to ensure supply from capacity totaling no less than 626,000 tons.
The supply-demand gap in lithium battery copper foil is expected to lead to a bottoming and recovery in equipment manufacturers' contract liabilities. In November 2025, Nuode Investment Co.,Ltd. General Manager Chen Yubi stated that the anode current collector copper foil industry was largely unprofitable from Q4 2023 through 2024, began recovering in 2025, and reached a state of extremely high orders by Q4 2025. Contract liabilities for equipment manufacturers are relatively low. For instance, Hongtian Co.,Ltd.'s contract liabilities stood at 252 million yuan at the end of Q3 2025 (compared to 1.16 billion yuan in Q3 2023), and Taijin New Energy's contract liabilities were 680 million yuan at the end of 2025 (compared to 2.38 billion yuan in 2023). According to Taijin New Energy, the value of new equipment orders signed in H2 2025 reached 887 million yuan (excluding tax), an improvement compared to the 280 million yuan in H1 2025.
Electronic copper foil equipment stands to benefit significantly from AI expansion. The rapid adoption and development of AI, 5G, and related technologies are pushing PCB manufacturing towards high-speed/high-frequency, high heat resistance, high thermal conductivity, high-density wiring, and modularization. As a key conductive material for high-end PCBs, high-end electronic circuit copper foil must also see continuous performance upgrades. Industry development is focused on achieving thinner layers, high-temperature elongation, ductility, and high peel strength. Currently, producing ultra-thin carrier copper foil for chip packaging and very low-profile copper foil for high-frequency/high-speed circuits involves more complex processes and higher technical barriers. These high-end copper foil types are in short supply and primarily imported, prompting domestic manufacturers to hasten their domestic production capabilities.
Leading manufacturers have been building their presence in this area for years. Taijin New Energy's revenue from equipment for the high-end electronic circuit copper foil segment grew from 50 million yuan in 2022 to 107 million yuan in 2023, 177 million yuan in 2024, and 220 million yuan in 2025. This revenue primarily comes from RTF1-2 and HVLP1-2 copper foil, with clients including Solus Advanced Materials - Volta Energy (Hungary), Circuit Foil Luxembourg, Gold Circuit Electronics, LCY Technology, and Chang Chun Group. Hongtian Co.,Ltd.'s high-end HVLP copper foil equipment is a mature product with a broad client base, including Chang Chun Group, Nan Ya Plastics, Nuode Investment Co.,Ltd., Jia Yuan Technology, Zhongyi Technology, Xinjiang Yiri, and Guangdong Yinghua.
Regarding investment targets, it is suggested to focus on copper foil equipment companies such as Taijin New Energy, Hongtian Co.,Ltd., and Sanfu New Technology.
Risk warnings include industry demand growth falling short of expectations, intensifying industry competition, and slower-than-expected development in the electronic circuit copper foil sector.
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