Tashkent, Uzbekistan (UzDaily.com) — South Korean company SK Nexilis, specializing in the production of copper foil, is considering opening a facility in Uzbekistan due to high electricity costs in its home country, Business Korea reports.

According to sources cited by the publication, the plan involves relocating production currently based in the city of Jeonju. SK Nexilis already operates several plants in Malaysia. Copper foil is used in battery manufacturing.

The report notes that electricity costs account for up to 15% of the foil’s production cost. In South Korea, the price of one kilowatt-hour reaches $0.13, whereas in Uzbekistan it is $0.08. In addition, Uzbekistan has significant copper reserves and low extraction costs.

“We are considering various options, including relocating production abroad to ensure cost competitiveness. However, a final decision has not yet been made,” SK Nexilis commented on the potential relocation.