EcoPro BM (247540.KQ) has begun retooling its plant in Hungary to supply large volumes of high-nickel cathode material to European automakers, the company said on the 25th.
The company is converting an existing line dedicated to nickel-cobalt-aluminum (NCA) cathodes into one that can also handle nickel-cobalt-manganese (NCM) cathodes. The move is aimed at supplying high-nickel cathode material for premium electric vehicles in Europe starting in the fourth quarter of next year.
The line conversion is expected to cost about 40 billion won ($29 million). The Hungary plant entered commercial operation in the first half of this year and is set to start up a second line next month. It targets annual output of about 10,000 tons this year, with production forecast to expand to 30,000 tons next year.
EcoPro BM said it can secure a stable supply of nickel — which accounts for 50% of the manufacturing cost of battery cathode material — through the BNSI smelter in Indonesia. "The Hungarian unit is expected to turn to a full profit from the fourth quarter," said Kim Jang-woo, the company's head of management. "Based on a stable supply chain, we will strengthen our partnership with European automakers and accelerate improvements in profitability."
Analysts say the high-nickel cathode material supplied through the line conversion will be used in electric vehicles from BMW and Mercedes-Benz. Over the medium to long term, the plant's output is projected to keep expanding as the EU-UK Trade and Cooperation Agreement (TCA) and European automakers' demand for locally sourced materials converge. Yuanta Securities said in a recent report that EcoPro BM's shipments are expected to exceed 100,000 tons from 2028, when volumes from BMW and Mercedes-Benz begin to be reflected in earnest.
