EcoPro’s cathode material sales to Samsung more than treble

The battery materials supplier is seeking to diversify its customer base beyond Samsung SDI

EcoPro's cathode production facility
EcoPro's cathode production facility
Ik-Hwan Kim 1
2023-03-29 16:26:28 lovepen@hankyung.com
Batteries

EcoPro Group, South Korea’s leading battery materials producer, raked in more than 3 trillion won ($2.4 billion) in sales from its largest customer Samsung SDI Co. in 2022, according to recent regulatory filings by its key units.

The figure is a whopping 265% surge from the previous year, driven by the booming rechargeable battery market.

The group’s two key arms EcoPro BM Co. and EcoPro EM Co. supplied a combined 3.18 trillion won worth of cathode materials to the Samsung Group unit last year. Samsung SDI accounts for about 30% and almost all of the two units’ sales in 2022, respectively.

Cathode is a core ingredient of electric vehicle batteries.

EcoPro Group’s sales have been rapidly growing since it shifted to Samsung SDI in 2012, breaking away from Samsung’s rival LG Energy Solution Ltd.

In detail, Kosdaq-listed EcoPro BM posted 1 trillion won in sales from Samsung SDI in 2022, while unlisted EcoPro EM sold 2.16 trillion won worth of cathode materials to the latter.

Established in 2020, EcoPro EM is a 60:40 joint venture between EcoPro BM and Samsung SDI. Last year, it posted operating profit of 123.8 billion won.
EcoPro production complex in Pohang, South Korea
EcoPro production complex in Pohang, South Korea

Other than the business relationship, the cathode materials supplier has been hiring former Samsung SDI senior officials as executives, including EcoPro Group’s Chief Executive Song Ho-joon. Song previously led Samsung SDI’s strategic management division as a vice president.

Despite the sharp sales growth, however, its heavy reliance on Samsung SDI could be seen as a double-edged sword. Given this, EcoPro is striving to expand its customer base.

“We’re working to also secure orders from LG Energy Solution,” CEO Song told The Korea Economic Daily in a recent interview.

This year, EcoPro Group aims to nearly double its sales to 10 trillion won from 2022, riding on the booming EV battery market.

Meanwhile, EcoPro Materials Co., a high-nickel precursor manufacturer, is seeking to list on the Korea Exchange later this year.

Write to Ik-Hwan Kim at lovepen@hankyung.com

Yeonhee Kim edited this article.
#Batteries #SamsungSDI #EcoPro #cathode #EcoProEM #EcoProBM #LGEnergySolution #EcoProMaterials

EcoPro taps mines in the Americas to secure cathode materials: EcoPro CEO

EcoPro taps mines in the Americas to secure cathode materials: EcoPro CEO

EcoPro factory in Pohang (Courtesy of EcoPro) EcoPro Group, South Korea’s leading battery materials producer, is mulling investments in mines in the Americas to source cathode materials, a move that will complete the vertical integration of the company’s cathode production process,

Battery material maker EcoPro Materials eyes $2.3 billion IPO

Battery material maker EcoPro Materials eyes $2.3 billion IPO

EcoPro BM's headquarters and production complex in South Korea EcoPro Materials Co., a unit of South Korea’s battery materials group EcoPro Group, is looking to list its shares on the country’s main bourse by the end of the third quarter.According to industry sources on Tuesday, the

S.Korea's EcoPro boosts raw material plant for cathode materials

S.Korea's EcoPro boosts raw material plant for cathode materials

South Korea's EcoPro Co., a leading cathode supplier for global battery makers, is expanding its plant for raw materials used in secondary battery cathodes in Pohang, North Gyeongsang Province. On Tuesday, EcoPro's affiliate, EcoPro Innovation, commenced construction on the second high-purity

EcoPro Group nearly doubles sales target to $7.8 billion this year

EcoPro Group nearly doubles sales target to $7.8 billion this year

EcoPro BM's headquarters in South Korea South Korea's EcoPro Group has set its sales target this year at 10 trillion won ($7.8 billion), nearly double that of last year, under a strategy to break away from its competitors based on the rapid growth of the battery materials market. As well as rai
(* comment hide *}