Ecopro Materials
EcoPro Materials Co., Ltd. is a South Korean manufacturer of cathode precursors for lithium-ion batteries. The company, based in Pohang, North Gyeongsang Province, was established in 2017 as part of the EcoPro Group's expansion into battery materials production.
History
The company was founded in April 2017 to supply precursor materials to EcoPro BM, another subsidiary within the EcoPro Group. This vertical integration was intended to reduce dependence on external suppliers for battery component materials.
In 2021, EcoPro Materials expanded beyond precursor production to include nickel and cobalt refining operations. The company completed an initial public offering on the Korea Exchange's KOSPI market in November 2023. The offering raised approximately 419 billion won after the company reduced the share count and priced at the lower end of its target range due to weak demand conditions in the electric vehicle sector.
Operations
EcoPro Materials produces high-nickel precursors, which are intermediate materials used in manufacturing cathode active materials for lithium-ion batteries. These precursors are created by combining nickel, cobalt, and manganese in specific ratios before being processed into finished cathode materials.
The company operates production facilities at its Pohang campus with a reported annual capacity of 50,000 tons . Plans have been announced to expand capacity to approximately 200,000 tons by the late 2020s, though such expansion is contingent on market demand and capital availability.
, the company also began refining nickel and cobalt, seeking greater control over its raw material supply chain. Most of its production has historically been supplied to affiliated companies within the EcoPro Group, particularly EcoPro BM.
Corporate structure
EcoPro Materials is majority-owned by EcoPro Co., the holding company of the EcoPro Group. The group includes several battery-related subsidiaries including EcoPro BM (cathode materials manufacturer), EcoPro HN (environmental equipment producer), EcoPro Innovation (battery recycling operations), and EcoPro CnG (industrial gas and battery collection services).
The integrated structure allows materials to flow between subsidiaries, from raw material refining through precursor production to finished cathode manufacturing.
Market position
The company faces competition from established precursor manufacturers in Japan and China, including Sumitomo Metal Mining, CNGR Advanced Material, and GEM. While EcoPro Materials has a significant share of the South Korean market, it remains smaller than major international competitors in terms of overall production volume.
In 2023, the company reported operating losses amid falling mineral prices and slower growth in electric vehicle demand. The company's financial performance has been closely tied to demand fluctuations in the battery and electric vehicle sectors.
Expansion plans
In 2023, EcoPro announced a joint venture with SK On and Ford Motor Company to construct a cathode materials facility in Quebec, Canada. The project is scheduled for completion by 2026, with an annual production capacity projected at 45,000 tons. The joint venture, called EcoPro Cam Canada LP, involves a total investment of 1.2 trillion won.
The company has also discussed potential investments in Indonesian nickel processing facilities to secure access to raw materials.