EcoPro BM Co., South Korea’s top cathode materials producer, has decided to set up its first overseas plant in Hungary.
EcoPro BM on Dec. 9 announced a plan to invest 970 billion won ($824.1 million) in a factory in the eastern town of Debrecen. The plant is expected to have an annual capacity of 108,000 tons, enough for 1.35 million electric vehicles.
The company aims to start the operation of the first phase of the plant in the second half of 2024 and the second phase a year later. The factory is predicted to create up to 630 jobs.
“It is an investment to make inroads into the rapidly growing European market,” said EcoPro BM president Kwon Woo-seok. “Debrecen was the best choice in terms of infrastructure, labor environment and customer accessibility. Active support from the Hungarian government and city authorities also influenced our decision.”
Hungary's Foreign Minister Peter Szijjarto said the government was providing a grant to EcoPro BM, the amount of which will be published after the European Commission is notified of the deal, according to Reuters.
EcoPro BM earlier unveiled a plan to ramp up cathode materials production capacity to 480,000 tons, enough for 6 million EVs, by 2026 with an investment of 2.8 trillion won in South Korea, North America and Europe. Currently, the company is producing 95,000 tons a year in South Korean plants.
It has yet to announce the location of a US factory.
EcoPro BM was set to start construction of cathode materials plants in the US and Eastern Europe next year, said Lee Dong-chae, the founder and chairman of EcoPro, the holding company of EcoPro BM, in an exclusive interview with The Korea Economic Daily in October.The Central European plant will supply most of the products to Samsung SDI Co., which is currently operating a battery plant in Göd, Hungary, Lee said during the interview.
Write to Jeong Min Nam at
peux@hankyung.comJongwoo Cheon edited this article.
