[Inside Ecopro] Sales Soar 666 Times in 18 Years... No Ioniq Without Ecopro

Early Entry into Key Anode Material Market with Core Technology in 2004
Main Customers Samsung SDI and SK On... Recycling with LG Energy Solution
"Diversifying Sales Channels Including Automakers... Expanding Overseas Factories"

"I certify a profit of 5.8 billion KRW from 200 million KRW."

Recently, a profit certification from an investor has become a hot topic. His investment target is none other than this year's hottest stock, EcoPro. The stock price, which surpassed 100,000 KRW earlier this year, broke through 1,000,000 KRW in just seven months, riding the electric vehicle battery boom. This is a staggering 9-fold (823%) surge. During the same period, the KOSPI index rose only 13%. EcoPro's daily trading volume exceeds 2.5 trillion KRW. Known among investors as a 'gambling table,' can this company continue its current success trajectory?

On the 18th, when Ecopro's stock price surpassed 1 million won during trading hours, an employee at the Korea Exchange in Yeouido, Seoul, was closely monitoring the Ecopro chart. Photo by Hyunmin Kim kimhyun81@

EcoPro recently announced plans to invest 2 trillion KRW in Pohang by 2028 to establish the anode material hub 'Blue Valley Campus.'

This is the second large-scale investment following the 'EcoBattery Pohang Campus,' completed in 2021 after an investment of 2.9 trillion KRW since 2017. It is unusual for a mid-sized company to announce an investment plan worth over 2 trillion KRW. Last year, the total facility investment by domestic mid-sized companies was 2 trillion KRW.

Founded in 1998, EcoPro has early on built an anode material ecosystem centered around EcoPro BM, which holds a 45.58% stake. The Pohang Campus vertically integrates key businesses such as lithium hydroxide, precursors, anode materials, and used battery recycling. Anode materials are one of the four core components of batteries, accounting for about 40% of the battery manufacturing cost. Precursors are the key raw materials, making up over 65% of the anode material cost.

EcoPro BM produces high-nickel ternary cathode active materials containing more than 80% nickel. It ranked first globally in ternary cathode material production as of 2021. There are not many companies capable of producing high-nickel battery cathode materials.

Domestic companies include LG Chem (world rank 2), Samsung SDI (world rank 8), POSCO Future M (world rank 9), and L&F (world rank 10). Overseas companies such as Japan's Nichia, Belgium's Umicore, Germany's BASF, China's Changyuan Lico, and Japan's Sumitomo occupy ranks 3 to 7.

Ecopro Performance

EcoPro's sales grew from 7.5 billion KRW in 2004, when it started the anode material business, to 5 trillion KRW last year, an increase of over 660 times in 18 years. EcoPro BM and its holding company EcoPro rank first and second in KOSDAQ market capitalization, respectively.

Early entry into the anode material market, where proprietary technology is crucial, and securing unique technology are also cited as key success factors. To improve electric vehicle driving range and price competitiveness, it is essential to increase the nickel content in anode materials while ensuring product stability.

EcoPro was the first in Korea to develop and mass-produce NCA (Nickel-Cobalt-Aluminum) materials in 2008, and in 2016, it succeeded in mass-producing the world's first NCM (Nickel-Cobalt-Manganese) core-shell (CSG) cathode materials for electric vehicles. In 2021, it newly mass-produced cathode active materials with nickel content exceeding 90%. Cathode active materials refer to the materials used in battery cathodes.

EcoPro is the only domestic company capable of simultaneously producing high-nickel cathode materials NCA and NCM and supplying all batteries required by its clients. To prepare for domestic battery cell companies' mass production of LFP (Lithium Iron Phosphate) batteries, it also established an LFP team within its R&D headquarters.

On October 21 last year, EcoPro EM, a joint venture between Samsung SDI and EcoPro BM, held a completion ceremony for the cathode material factory 'CAM7' in Pohang, Gyeongbuk. (From the third person from the left) Lee Dong-chae, former chairman of EcoPro, Choi Yoon-ho, president of Samsung SDI, Lee Dal-hee, deputy governor for economic affairs of Gyeongbuk Province, and Lee Jang-sik, vice mayor of Pohang City.
[Photo by Samsung SDI]

The main customers are Samsung SDI and SK On. Initially, sales were centered on Samsung SDI during the early days of the anode material business, but since 2018, sales channels have expanded to SK On, a latecomer in the electric vehicle battery market. In 2020, EcoPro BM established the cathode material joint venture 'EcoPro EM' with Samsung SDI and SK On holding 40% and 60% stakes respectively, and completed the CAM6 plant (annual capacity 36,000 tons) in Pohang, Gyeongbuk, in October 2021, and the CAM7 plant (annual capacity 54,000 tons) in October 2022.

In 2021, a long-term contract was signed to supply cathode materials worth 10 trillion KRW to SK On from 2024 to 2026. In July last year, the three companies, including Ford, signed a letter of intent for a joint investment of 1 trillion KRW in North America. Following this, in May this year, EcoPro BM acquired 100% of Canadian secondary battery material company 'EcoCam' for 156.3 billion KRW.

On March 24, SK On, EcoPro Materials, and GEM participated in an investment agreement with 'GEM Korea New Energy Materials' and the Saemangeum Development Authority at a hotel in Gunsan, Jeollabuk-do, to establish a precursor production facility, followed by a commemorative photo. (From right) Choi Young-chan, President of SK On; Kim Kwan-young, Governor of Jeollabuk-do; Kim Gyu-hyun, Head of Saemangeum Development Authority; Xu Kaihua, Chairman of GEM; Jung Woon-chun, Member of the National Assembly; Kang Im-jun, Mayor of Gunsan. [Photo by SK On]

SK On and Chinese precursor producer Ge Lin Mei (GEM) are also building nickel intermediate and precursor production plants.

They plan to build a nickel-cobalt hydroxide mixed product (MHP) production plant in Indonesia, the world's largest nickel producer, and start producing 30,000 tons of nickel from the third quarter of 2024. Based on the MHP secured here, they will produce precursors in Saemangeum. The total investment by the three companies is up to 1.21 trillion KRW. A joint precursor plant with an annual capacity of 50,000 tons is scheduled to be completed next year. They are also cooperating with LG Energy Solution in the used battery recycling business.

An EcoPro official said, "Due to joint ventures, a large portion of sales comes from Samsung SDI and SK On." He added, "We plan to expand cathode material production plants in Hungary and Canada," and "We are continuously pursuing customer diversification, including negotiations with automakers."

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