EcoPro BM Stock Gains Momentum on Expectations of Growing Cathode Material Demand

[Asia Economy Reporter Koo Eun-mo] As expectations for the expansion of demand for cathode materials, a key component of secondary batteries, rise, the stock price of EcoPro BM continues to gain momentum day after day.

According to the Korea Exchange on the 18th, EcoPro BM's stock price closed at 164,000 KRW, up 4.19% (6,600 KRW) from the previous trading day, continuing its upward trend for three consecutive trading days. Notably, during the session, it rose to 166,700 KRW, setting a new 52-week high. Since hitting a low of 114,000 KRW on October 26, EcoPro BM's stock price has rebounded, rising 43.9% as of the previous day, more than double the KOSDAQ return of 21.3% over the same period.

With the recent significant increase in electric vehicle sales, expectations that demand for NCA cathode materials will continue to grow, especially among overseas clients, appear to be influencing the stock price rise. In October, global electric vehicle sales surged by 125% year-on-year to 330,000 units, marking explosive growth. Jeong Won-seok, a researcher at Hi Investment & Securities, stated, “Although the shipment growth of cylindrical batteries from major clients may slow somewhat due to seasonal factors, the demand growth trend for NCA (Nickel-Cobalt-Aluminum) cathode materials centered on overseas clients is expected to continue.”

Another noteworthy factor is that from next year, high-nickel cathode materials will begin to be applied to medium and large batteries. Samsung SDI, a key client, plans to launch the next-generation Gen5 battery in the second half of next year, applying high-nickel NCA cathode materials to improve energy density and gradually expanding the use of silicon anode active materials. This is expected to bring mid- to long-term benefits to EcoPro BM, which has secured outstanding technological capabilities in the high-nickel cathode material field.

Researcher Jeong said, “From next year, the demand for medium and large batteries centered on high-nickel materials will increase significantly, driving both profit growth and stock price appreciation. Considering the mid- to long-term growth potential of the cathode active material market due to the increase in electric vehicle battery demand, sales volume is expected to continue to grow.”

Another positive factor is that EcoPro BM is expanding its factories to increase supply in line with growing demand. The CAM5 plant, with a production capacity of 30,000 tons, began full-scale operation of 10,000 tons in the second half of this year, and the entire 30,000 tons is expected to be sequentially operational next year. CAM5 currently supplies cathode materials to SK Innovation’s NCM (Nickel-Cobalt-Manganese) batteries, which have seen a recent surge in demand.

EcoPro BM’s cathode material production capacity based on actual operation was 17,000 tons in 2018, expected to reach 40,000 tons this year, 60,000 tons next year, and 90,000 tons in 2022 (including EcoPro EM). Since the CAM5 additional plant is still under construction from the ground up, the expansion scale could be even larger.

With continued growth in performance, EcoPro BM is expected to enter the 1 trillion KRW annual sales era next year. According to financial information provider FnGuide, EcoPro BM’s operating profit for the fourth quarter of this year is estimated at 19.9 billion KRW, a 1143.7% increase compared to the same period last year. Next year’s sales are expected to reach 1.3753 trillion KRW, a 55.5% increase from this year, and operating profit is also projected to grow 65.9% to 99.9 billion KRW.

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