[Featured Stock] Eco&Dream, Precursor Specialist to Continue K-Anode Material Success... Full-Scale Growth with 5x Expansion

Eco&Dream is showing strong performance. The stock price appears to be influenced by the prospect of improved earnings as the company begins full-scale production of precursors, which account for 70% of the cost of cathode materials. Korea Investment & Securities pointed out that the key factor is the high likelihood of Eco&Dream signing a main contract with a global U company within this year. They forecast that precursor production will start within this year, enabling substantial growth based on the precursor business from next year.

As of 10:35 AM on the 25th, Eco&Dream is trading at 45,500 KRW, up 1.76% from the previous day.

In the domestic stock market, as cathode material companies such as EcoPro BM and POSCO Future M surged, interest is spreading to precursor companies.

Korea Investment & Securities analyzed that Eco&Dream is on the verge of a breakthrough as a specialized precursor company.

Eco&Dream is a specialized precursor company for secondary batteries. It entered the secondary battery materials business in 2014 by starting mass production of NCM cathode active material precursors. Precursors account for 70% of the cost of cathode materials and are key materials that determine characteristics such as output and density of cathode materials.

Researcher Yoon Cheol-hwan of Korea Investment & Securities explained, "Although precursor sales are still small ahead of full-scale production, direct benefits to Eco&Dream are expected due to the IRA and CRMA enactments, despite China’s high global market share of 70%."

He added, "The precursor business will act as a core growth engine for Eco&Dream going forward. The expected sales composition for this year is catalyst materials 44.4%, catalyst systems 18.4%, precursors 22.7%, and others 14.5%."

Furthermore, "Eco&Dream expanded its small-diameter precursor production capacity from 1,000 tons to 5,000 tons in the second half of last year and completed trial operations. It is expected that a main contract with the global U company will be finalized in the second half of this year, enabling initial mass production of precursors," he forecasted.

Researcher Yoon explained, "The global U company’s cathode material production capacity target for 2030 is more than eight times the 65 GWh in 2022, and they have recently been actively expanding their plant in Poland." He added, "Eco&Dream secured a 45,000-pyeong site in Saemangeum in June and is prepared to secure a precursor production capacity of 25,000 tons by 2025."

Researcher Yoon analyzed, "Upon signing the main contract within this year, it will be possible to specifically confirm the initial mass production volume, production plans for next year, expansion schedules through 2025, and mid-to-long-term roadmaps such as utilization plans for the Saemangeum site after the 20,000-ton expansion."