EcoPro BM Jumps to 7th Place in KOSDAQ Market Cap

Electric Vehicle Hopes Drive Battery Beneficiary Stocks Rally

[Asia Economy Reporter Oh Ju-yeon] Since the outbreak of the novel coronavirus infection (COVID-19), market expectations for electric vehicles have risen, ushering in a golden age for companies related to electric vehicle materials and components. With the possibility of electric vehicle-related policies being included in economic stimulus measures and strong carbon emission regulations in Europe, sales are expected to expand in the second half of the year, driving the stock prices of related companies to soar. EcoPro BM, which had been hovering outside the top 10 in market capitalization on the KOSDAQ market, jumped to 7th place in market cap this month.

According to the Korea Exchange on the 12th, EcoPro BM recorded an intraday high of 128,700 won, setting a new 52-week high. EcoPro BM, considered a beneficiary stock of electric vehicle batteries at the beginning of the year, saw its stock price rise but plunged sharply on March 19 due to the COVID-19-induced market shock. Since then, it has continued its upward momentum by repeatedly breaking previous highs. This is because the electric vehicle industry, along with the fourth industrial sector including non-face-to-face (untact) and 5G, has attracted attention, drawing investors to electric vehicle batteries (secondary batteries).

EcoPro BM, which was ranked 12th in market capitalization on the KOSDAQ market at the beginning of the year, rose four places to 8th as of the previous day's closing price. As of 10 a.m. on the same day, it was ranked 7th. The stock price, which was 53,000 won at the close on January 2, has more than doubled. Although it fell more than 3% that day, it is still up about 125% compared to the beginning of the year.

EcoPro BM is regarded as the strongest player in cathode batteries for electric vehicles. Its market share ranks second in the world, following Sumitomo, which supplies battery materials for Tesla electric vehicles. Recently, it has secured demand through mid- to long-term supply contracts with Samsung SDI and SK Innovation. In particular, it is expected to benefit from the expansion of the European electric vehicle market in the second half of this year. Production capacity is also expected to continue to increase.

Han Byung-hwa, a researcher at Eugene Investment & Securities, said, "EcoPro BM's cathode material production capacity, which was 11,000 tons in 2017, reached 59,000 tons last year and is expected to reach 85,000 tons by the end of next year." He added, "Especially, EcoPro BM's specialized high-nickel cathode materials align with the battery development direction of electric vehicle companies, so facility expansions requested by customers are expected to continue beyond next year."

In the high-nickel cathode material market, an oligopoly with Sumitomo is intensifying, and the growth potential is considered high going forward. Accordingly, there is also analysis advising to delay profit-taking as much as possible. Joo Min-woo, a researcher at Meritz Securities, said, "Based on technological gaps, they maintain high entry barriers, the possibility of supplying Tesla electric vehicle batteries is increasing, and they have the fundamental strength to maintain profitability through vertical integration of raw materials," naming it the top priority stock in secondary battery materials.

This content was produced with the assistance of AI translation services.