EcoPro Group Stocks Surge on Secondary Battery Sector Rally

EcoPro Group stocks rallied sharply on Wednesday, led by holding company EcoPro (086520.KQ), along with EcoPro BM (247540.KQ), EcoPro Materials (450080.KQ), and EcoPro HN (383310.KQ).

According to Korea Exchange data on January 29, EcoPro HN closed at 36,450 won, up 29.95% from the previous trading day, hitting the daily limit. EcoPro closed at 168,600 won, up 21.82%, while EcoPro Materials ended at 74,600 won, gaining 15.30%. EcoPro BM also rose 7.26%.

The group-wide rally was tied to strength in the secondary battery sector. LG Energy Solution (373220.KS) jumped 5.51% after reporting strong earnings, amid expectations that ternary batteries will be adopted in robots. The gain allowed LG Energy Solution to reclaim the third spot in KOSPI market capitalization, overtaking Hyundai Motor.

The expanding robot market is also seen as positive for EcoPro Group. In the electric vehicle market, Korean secondary battery makers have struggled against price-competitive Chinese lithium iron phosphate (LFP) batteries, as they focused on ternary batteries unlike Chinese competitors. However, ternary batteries are considered more suitable for robots due to their higher energy density compared to LFP.

EcoPro Group has established vertical integration in secondary batteries. EcoPro BM, a core affiliate, produces high-nickel cathode materials. EcoPro Materials manufactures precursors, a key raw material for cathode materials, while EcoPro HN specializes in eco-friendly solutions.

Investor sentiment was also boosted by EcoPro's announcement on the same day that it would establish a European sales subsidiary in Germany to expand into the European market. The company appointed Kimbal Birdi as head of the new subsidiary following an organizational restructuring. EcoPro plans to use the European entity to proactively respond to the electric vehicle and battery supply chain.