Doosan Solus stocks rose to 49,400 won ($44.70) on Friday, a 6.7 percent increase from a day prior, following a local news report that the company is in talks with Tesla to supply copper foil for electric vehicles in Europe.

According to the news report, the material solutions unit of Doosan Group is expected to sign an agreement on general terms and conditions to provide copper foil for Tesla electric vehicles in Europe. The exact size and the length of the contract will be decided after the agreement is signed.

Doosan Solus, which operates a copper foil plant in Hungary, is the only copper foil manufacturer in Europe.

A Doosan Solus official said the company cannot confirm the news report.

Doosan Solus last month decided to invest 270 billion won to increase the Hungary plant’s capacity from 10,000 metric tons to 25,000 tons by 2022.

According to market tracker SNE Research, global electric vehicle battery use is expected to soar from 303 gigawatt-hours this year to 1,270 gigawatt-hours in 2025. Buoyed by strong regulations on carbon emissions, European electric car battery use is predicted to spike from 70 gigawatt-hours to 330 gigawatt-hours in the same period.

A lithium-ion battery comprises four key components – cathodes, anodes, electrolytes and separators. Inside an anode, which accounts for a battery’s stability, a copper foil is coated with a graphite material. How well the copper foil bonds with the slurry of graphite coating determines the structural stability of the battery. The copper foil also serves as a path through which electrons travel. With high heat conductivity, the copper foil is a channel through which a battery releases heat generated from inside to the outside.

By Kim Byung-wook (kbw@heraldcorp.com)