EcoPro BM has begun renovations at its Hungary plant to supply large-scale high-nickel cathode materials to global European automotive OEMs.
On August 24, EcoPro BM announced that it is modifying its existing nickel-cobalt-aluminum (NCA) line to produce nickel-cobalt-manganese (NCM) materials, which will be supplied to premium electric vehicles in Europe starting in the fourth quarter of next year.
The Hungary plant, which began commercial operations in the first half of this year, has an annual production capacity of 54,000 tons and is currently operating with the NCA line. The renovation will require an investment of approximately 40 billion won.
EcoPro BM is currently proceeding with equipment orders and shipping to convert this line into a 'NCA NCM mixed line.'
The Debrecen plant in Hungary commenced operations of its first line on June 1 and is set to begin operations of its second line in September. The company aims for an annual production target of 10,000 tons this year, with plans to increase production to 30,000 tons next year.
The high-nickel cathode materials produced for Europe will contain over 90% nickel. EcoPro Group is working to secure a stable supply of nickel, which accounts for 50% of the manufacturing cost of battery cathode materials, through its BNSI smelter in Indonesia, enhancing its supply chain and cost competitiveness for OEM contracts.
Kim Jang-woo, CEO of EcoPro BM, stated, "We expect the Hungary subsidiary to turn a profit starting in the fourth quarter. We will strengthen partnerships with European automotive OEMs based on a stable supply chain and accelerate profitability improvements."
Meanwhile, during a second shareholders' meeting on August 21, EcoPro BM projected that due to recent stock price declines, the scale of funds raised through a capital increase would decrease from the initially planned 1.2 trillion won to around 900 billion won.
However, the company will continue its planned growth investments. A company official noted, "We will supplement the shortfall through external financing such as loans and corporate bonds, and investments in the Indonesian nickel and Hungary plants will proceed as scheduled."
* This article has been translated by AI.
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