Ecopro Q1 Operating Profit Reaches 60.2 Billion Won, Up 42-Fold Year-on-Year

Ecopro reported a significant improvement in its first-quarter earnings this year, driven by a recovery in key downstream industries such as semiconductors and electric vehicles, rising metal prices, and the reflection of performance from its Indonesian smelter.

Exterior view of the headquarters of Ecopro located in Cheongju, Chungbuk. Ecopro

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On April 29, Ecopro announced that, on a consolidated basis, its first-quarter sales reached 822 billion won and operating profit stood at 60.2 billion won. Compared to the same period last year, sales increased by about 2%, while operating profit surged by 4,280.1%.

The strong performance of major affiliates engaged in the secondary battery business, the consolidated earnings from the Indonesian 'GEN (Green Eco Nickel)' smelter subsidiary, and rising metal prices all contributed to the improved results. The average price of lithium hydroxide rose approximately 80%, from $10.3 per kilogram in the fourth quarter of last year to $18.5 per kilogram in the first quarter of this year, supporting an improvement in product sales prices.

Looking at the major subsidiaries, Ecopro BM, which produces cathode materials, recorded consolidated first-quarter sales of 605.4 billion won and operating profit of 20.9 billion won. While sales saw a slight decline compared to the same period last year (629.8 billion won), operating profit increased significantly from 2.3 billion won in the first quarter of last year. The results were driven by increased supply of cathode materials for European electric vehicles (EVs) and higher sales of cathode materials for energy storage systems (ESS) due to the expansion of artificial intelligence (AI) infrastructure.

Ecopro Materials, which manufactures precursors-the raw materials for cathode materials-recorded first-quarter sales of 166.5 billion won and operating profit of 15.7 billion won. The inclusion of the GEN subsidiary and increased sales volume of ESS precursors led to a 22% increase in sales compared to the same period last year, and the company remained in the black for the second consecutive quarter following the fourth quarter of last year.

Ecopro HN, which operates the eco-friendly materials business, posted 34.7 billion won in sales and 5 billion won in operating profit for the first quarter. The results improved due to increased demand for chemical filters, driven by expanded production facility investments by semiconductor clients, as well as new orders for fine dust reduction equipment. In addition, Ecopro Innovation, which is responsible for the lithium business, and Ecopro CNG, which handles waste battery recycling, also delivered solid performance, supporting the overall growth of the group.

An Ecopro representative commented, "All business segments-including smelting, precursors, cathode materials, and semiconductor materials-showed balanced growth, allowing us to maintain profitability in the first quarter. As mineral price increases are fully reflected in product prices starting from the second quarter, the pace of performance improvement is expected to accelerate."

Hojoon Song, CEO of Ecopro, said, "Our proactive efforts to secure future growth engines, including intensive process innovation to overcome management crises and the Indonesian smelting business, are bearing fruit. If the Hungarian plant begins operations in the second quarter and the International Green Industrial Park (IGIP) project proceeds successfully, we will secure unrivaled competitiveness in the global materials market and solidify our profitability."

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