[Click eStock] "EcoPro BM, New Electric Vehicle Parts Factory Fully Operational"…Target Price Up

[Asia Economy Reporter Ji Yeon-jin] SangSangIn Securities has raised the target stock price of EcoPro BM, a lithium-ion battery cathode material company, to 273,000 KRW, anticipating a significant improvement in its performance due to the growth of the global electric vehicle market.

The global electric vehicle market is expected to grow at an average annual rate of 30%. In particular, the adoption of electric vehicles in Europe is projected to increase by 70% compared to last year.

EcoPro BM's new factory (CAM5), capable of producing up to 30,000 tons of cathode materials, began operating 10,000 tons in the fourth quarter of last year. It is expected that the full 30,000 tons will be operational sequentially this year, with total cathode material production reaching 60,000 tons this year and 100,000 tons by 2020.

Jongwon Lee, an analyst at SangSangIn Securities, stated, "Samsung SDI, a client of EcoPro BM, plans to launch the 'Gen5 battery' in the second half of this year. This is very likely to expand the use of high-nickel NCA cathode materials to improve energy density." He added, "Competitors such as SK Innovation are also developing next-generation batteries with a higher nickel content than the current NCM811, so the mid- to long-term value expansion momentum is also positive."

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