[Featured Stock] Ecoplastic, Core Material CFRP for Hydrogen Mobility... The Beginning of Revaluation

[Asia Economy Reporter Hyungsoo Park] Ecoplastic is showing strong performance. It appears that the news of Hyundai Motor Group embarking on the popularization of hydrogen electric commercial vehicles to achieve a hydrogen society vision has influenced the stock price.

As of 1:08 PM on the 8th, Ecoplastic is trading at 4,930 KRW, up 17.8% from the previous day.

Hyundai Motor Group plans to equip all commercial vehicle lineups with hydrogen fuel cells by 2028, and all newly released models will be launched only as hydrogen electric vehicles and electric vehicles. Hydrogen electric passenger cars will also be continuously introduced. In Hyundai Motor’s case, the current single hydrogen electric RV lineup will gradually expand to three models, and Genesis plans to launch new hydrogen electric vehicles starting in 2025. Furthermore, the application of hydrogen fuel cells will be expanded across various modes of transportation such as trams, trains, ships, and urban air mobility (UAM), as well as across industries including housing, buildings, factories, and power plants.

Ecoplastic is a manufacturer of automotive body parts. It supplies plastic bumpers used in Palisade, Santa Fe, Tucson, Genesis, Venue, Nexo, Avante, i30, i40, Ioniq 5, and others. For Hyundai’s hydrogen vehicle Nexo, it supplies not only plastic bumpers but also plastic fender panel products.

The Ministry of Trade, Industry and Energy held a business restructuring plan review committee in December last year and approved the business restructuring plans of companies entering new industries. Ecoplastic added businesses capable of continuous growth through business restructuring. It has enabled entry into the next-generation automotive parts sector with high growth potential.

About 23% of automotive fuel consumption is related to vehicle weight. The heavier the vehicle, the higher the fuel consumption. Electric vehicles, which face the challenge of overcoming lower fuel efficiency compared to conventional internal combustion engine vehicles and raising driving range per charge to the level of internal combustion vehicles, need to reduce vehicle weight even slightly to improve fuel efficiency.

According to the Korea Automotive Technology Institute, reducing the weight of a 1,500 kg passenger car by about 10% improves fuel efficiency by 4-6% and acceleration performance by 8%. Additionally, it can achieve various effects such as shortening braking stopping distance, improving steering ability, increasing chassis durability, and reducing exhaust emissions. Automotive lightweighting is not simply about reducing weight but must satisfy the basic requirement of improving braking stability. Since manufacturing cost, productivity, and strength must be improved simultaneously, it is a field requiring significant technical effort.

Ecoplastic has secured lightweighting technology through the development of high-strength ultra-light carbon fiber reinforced plastic (CFRP) materials. One of its main products, the CFRP roof rack, was developed to replace heavy components made of steel and aluminum. It serves as a foundation for expanding the parts portfolio, and it mass-produces and supplies lightweight carbon fiber plastic trims and full plastic tailgates applied to Hyundai Motor’s G80 successor, Avante successor, electric vehicles, and compact SUVs.

Considering the high level of technology, sales using CFRP roof panels are expected to increase about threefold compared to existing steel roof panel sales, and sales are expected to increase 2.5 times compared to existing sales through the development of plastic exterior panels.

CFRP is a composite material made of carbon fiber and epoxy resin, used as an essential raw material across industries such as aerospace, automotive, shipbuilding, consumer goods, and sports equipment like helmets and skis. Currently, discussions are underway for parts materials in the automotive and aerospace sectors in Australia and Europe. Carbon fiber is an advanced material attracting attention as the 'future industrial rice' that will replace steel. It is four times lighter and ten times stronger than steel and can be applied as a substitute in all products using steel, making it a key material for the hydrogen economy transition. As technological advancements reduce manufacturing costs, body materials used in automobiles, aircraft, and fuel tanks are increasingly being replaced from steel and aluminum to CFRP.

Ecoplastic’s subsidiary, Komos, is promoting the development of an autonomous driving signal steering wheel using sensing technology to target the autonomous vehicle market. It is expected to contribute to high-performance autonomous driving, the expansion of electric and hydrogen vehicle adoption, and business diversification.