Ecopro BM (247540.KQ) climbed more than 11% during intraday trading on Wednesday, buoyed by expectations that secondary battery stocks will benefit from a rebound in European electric vehicle sales this year.
According to the Korea Exchange, Ecopro BM was trading at 216,500 won as of 10:21 a.m., up 11.03% from the previous session. Its affiliate Ecopro (086520.KQ) jumped 13.87% to 147,800 won at the same time.
The simultaneous rally of the Ecopro siblings is attributed to strong electric vehicle sales in Europe. As European EV sales began showing growth from March this year, expectations are growing that the favorable momentum will spread to secondary battery-related companies.
The new launch of Ecopro BM's Hungary plant is also seen as a positive factor. "Supply of nickel, cobalt and aluminum (NCA) cathode materials for German EVs is set to begin from the Hungary plant," said Han Byung-hwa, an analyst at Eugene Investment & Securities. "In the fourth quarter of this year, supply for European volumes of mid- to low-end lines from Korean EV makers is expected to shift from the Pohang plant to the Hungary plant."
The company is also expected to secure additional customers as Europe strengthens its supply chain localization and de-Sinicization stance. "The 54,000-ton cathode material plant in Hungary is set to begin full-scale operations this year, and customer response strategies are being concretized for most of the existing three lines, so it is expected to directly benefit from the recovery in European demand," said Lee Hyun-wook, an analyst at IBK Investment & Securities. "With Europe's supply chain localization and strengthening de-Sinicization stance, the possibility of securing additional customers is also high."
