[Special Stock] 'Investment Warning Item' Enchem Hits Intraday High Then Reverses Downward

300,000 Won Drops Sharply Before Eyes... Decline Over 3 Trading Days
Top Gainer Among Secondary Battery Stocks This Year
Benefiting from U.S. Policies and Expansion of Production Capacity and Supply Chain

Enchem, designated as an investment warning stock, hit an intraday record high before reversing to a decline. Enchem is the battery stock with the highest rate of increase this year, driven by expectations of benefits from U.S. electrolyte-related policies and supply chain expansion.

As of 9:44 a.m. on the 14th, Enchem was trading at 265,500 KRW, down 0.75% (2,000 KRW) from the previous day. The stock opened at 258,500 KRW, down 3.36% from the previous day, hit a 52-week high of 298,000 KRW, and then reversed to a decline. It turned to a downtrend after three trading days. Enchem's stock price has risen 224.31% since the beginning of this year. Enchem was designated as an investment warning stock the day before.

Enchem is a company that manufactures and sells electrolytes and additives for secondary batteries. The U.S. Department of Energy and Treasury Department officially formalized tax credit restrictions this year on electric vehicle models using Chinese-made battery components by announcing detailed guidelines for the Foreign Entities of Concern (FEOC). As a result, global electric vehicle and battery companies are restructuring their electrolyte supply chains, and non-Chinese companies are expected to benefit.

Enchem is expanding its supply chain while increasing production capacity. It has started or plans to supply electrolytes to LG Energy Solution and General Motors (GM) joint venture (JV) Ultium Cells, Japanese battery companies, and U.S. electric vehicle companies. It is also pursuing supply contracts with French companies Verco and ACC, as well as Chinese battery companies with factories in Europe.

Enchem plans to increase its electrolyte production capacity from 420,000 tons last year to 800,000 tons this year. It is constructing a factory in Tennessee, USA, with an annual production capacity of 175,000 tons, and in Europe, it plans to increase the production capacity of electrolyte factories in Wrocław, Poland, and Kom?rom, Hungary, by 30,000 tons each.

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