Ecopro BM Reports Q2 Operating Profit of KRW 49 Billion, Up 1,159% Year-on-Year

Increase in Cathode Material Sales for EVs and ESS
Strengthening Product Portfolio with HVM and LMR

Ecopro BM's second-quarter profit margin expanded significantly. Shipments of cathode materials for energy storage systems (ESS) and electric vehicles (EV) increased, resulting in a substantial rise in both revenue and operating profit compared to the first quarter and the same period last year. Ecopro BM plans to continue its growth by diversifying its product lineup, recognizing investment gains from its investment in an Indonesian nickel smelter, and strengthening its cost competitiveness.

Photo of the exterior of the EcoPro BM headquarters located in Ochang, Chungbuk. EcoPro BM

On August 5, Ecopro BM announced that its consolidated revenue for the second quarter was KRW 779.7 billion, with operating profit reaching KRW 49 billion. Compared to the same period last year, revenue decreased by 3.7%, while operating profit increased by 1,159.1%.

An Ecopro BM representative stated, "This improvement in performance was primarily due to increased sales of cathode materials for EVs, driven by the launch of new vehicles and strong sales of major models by leading automotive original equipment manufacturers (OEMs), as well as increased demand for power tools (PT) and ESS. Additionally, profits related to the Indonesian investment (KRW 40.5 billion) played a significant role." The representative further explained, "The profit from the Indonesian investment is a result of acquiring a stake in an ESG (environmental, social, and governance) nickel smelter, and we expect to recognize this investment gain in the third quarter as well."

Furthermore, Ecopro BM expects cathode material sales to increase in the second half of this year due to the operation of new factories by client companies and the anticipated resumption of subsidies in the European EV market. In addition, under the Trade and Cooperation Agreement (TCA) between the European Union (EU) and the United Kingdom, the use of EU-produced cathode materials will become mandatory after 2027. In this context, Ecopro BM's Hungarian plant is expected to secure an advantageous position in the European market and attract new customers.

Alongside these developments, the company anticipates that domestic ESS bidding volumes will rise due to increased demand from data centers and renewable energy sectors, leading to strong sales of ternary NCA cathode materials. In fact, second-quarter sales of cathode materials for the ESS sector reached KRW 81.4 billion, representing a 100% increase from KRW 40.7 billion in the previous quarter.

Ecopro BM is also strengthening its product lineup. The company is currently converting existing production lines into dedicated mid-nickel lines to manufacture high-voltage mid-nickel (HVM) cathode materials. In addition, it is enhancing the quality of lithium manganese-rich (LMR) cathode materials and securing mass production capabilities.

For lithium iron phosphate (LFP) cathode materials, Ecopro BM plans to expand its existing quasi-pilot line, which has an annual capacity of 3,000 tons, to a semi-mass production scale of 5,000 tons per year by the end of this year. The company is currently in supply discussions with global automotive OEMs for HVM, LMR, and LFP cathode materials. As a leader in ternary high-nickel cathode materials, Ecopro BM will diversify its product portfolio with HVM, LMR, and LFP, thereby strengthening its responsiveness to the market.

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