WCP Breaks Through Electric Vehicle Chasm, Posts Profit in Q2

Proceeding with European Expansion as Planned
North America Decision in Q1 Next Year

WCP, a lithium-ion battery separator company, announced on the 5th that it recorded sales of 116.6 billion KRW and an operating profit of 1.8 billion KRW in the second quarter. The second-quarter sales increased by 4.7% compared to the previous quarter and by 53% compared to the same period last year. Operating profit increased by 200% compared to the previous quarter but decreased by 89% compared to the same period last year (16.7 billion KRW).

WCP emphasized the significance of maintaining consecutive profits following the first quarter despite the chasm controversy over stagnant electric vehicle demand, attributing this to efforts to improve profitability such as cost reduction. A company representative stated, "Supply of products for electric vehicles was more robust than expected, enabling us to maintain sales and operating profit at levels similar to the previous quarter," and added, "Logistics costs due to the Middle East war and expenses related to installing new lines applying new methods and automation affected profitability."

WCP explained that it plans to continue cost reduction in preparation for the possibility that the chasm will not end in the short term and will flexibly manage supply volumes according to demand fluctuations from domestic and overseas battery cell companies. WCP will proceed with its planned entry into the European market but will make a final decision on entering the North American market in the first quarter of 2025.

A company representative said, "Discussions with customers on new products to be applied to new batteries such as 46-pi and sodium-ion batteries are actively underway," and added, "We are preparing to publish our first sustainability management report centered on the ESG committee established this year for the membrane business."