"We plan to lead the market in the high-nickel precursor sector, which is expected to account for more than half of the entire precursor market, based on differentiated technological capabilities."
Kim Byung-hoon, CEO of EcoPro Materials, is seen explaining the company at a press conference held on the 2nd at the 63 Building in Yeongdeungpo-gu, Seoul. Photo by Yoo Hyun-seok
On the 2nd, Kim Byung-hoon, CEO of Ecopro Materials, held a press conference at the 63 Building in Yeongdeungpo-gu, Seoul, stating, "With the growth of the eco-friendly battery market, precursor demand is expected to continue growing at an average annual rate of 30% until 2027," revealing this goal.
Ecopro Materials is the only domestic company that mass-produces precursors, a core material for secondary batteries. Precursors are raw materials used in the preliminary stage of making cathode materials. As a key material determining the performance of lithium-ion batteries, they account for about 20-30% of the battery cost.
Ecopro Materials has established an integrated production system combining raw material processing (RMP: a process that refines high-purity metal sulfate by inputting low-purity intermediate materials) and precursor manufacturing (CPM). RMP is a unique process that differentiates Ecopro Materials from other companies.
Through proprietary process design and methods, it features cost competitiveness compared to other companies' refining processes. The RMP process enables the production of high-purity precursor raw materials not only from intermediate raw materials produced at mines but also from primary refined materials through recycling of used batteries. Collaboration with domestic used battery recycling companies such as Ecopro CNG, a family company of Ecopro, is also cited as a strength in reducing the outflow of resources overseas.
Ecopro Materials started its first precursor plant in 2018 and completed its first raw material plant in 2021. In 2022, it built the second precursor plant, and in 2023, the second raw material plant. It plans to construct the third and fourth precursor and raw material plants on approximately 120,000㎡ of land in the Yeongilman Industrial Complex, with the third plant scheduled for completion in January 2025 and the fourth in July 2025.
Along with expanding production capacity, sales have steadily grown. Sales increased from 56.9 billion KRW in 2018 to 665.2 billion KRW last year, an average annual growth rate of 84.9%. Precursor production capacity increased about fourfold from 7,200 tons to 28,333 tons during the same period. In particular, the current annual precursor production capacity of 50,000 tons is planned to be increased to 210,000 tons by 2027.
Going forward, Ecopro Materials will also accelerate efforts to expand external sales channels. Although a significant portion of the precursors produced by Ecopro Materials is currently consumed by Ecopro BM, the strategy is to increase the proportion of external sales to 40-50% around 2027.
Along with this, the company plans to continue research and development (R&D) to lead the market. As the electric vehicle era fully unfolds, consumer demand for improved driving range will increase, inevitably boosting demand for batteries with high energy density. Ecopro Materials aims to maintain technological superiority over competitors through continuous R&D investment and to prepare for this electric vehicle era by strengthening cost competitiveness based on the RMP process.
Kim Byung-hoon, CEO of Ecopro Materials, said, "We are pursuing future strategies to maintain our position as the world's top precursor company and to sustain a significant gap with competitors," adding, "We will continue developing next-generation precursors to maintain technological leadership in the precursor market."
On September 25, Ecopro Materials submitted a securities registration statement to the Financial Services Commission and entered the public offering process on the Korea Exchange. A total of 14,476,000 shares will be offered, with the desired offering price per share ranging from 36,200 to 44,000 KRW. The investment funds raised through the offering are estimated to reach up to 636.944 billion KRW. Ecopro Materials plans to use the funds raised through the offering for additional plant and facility investments and raw material purchases.
The demand forecast period is from October 30 to November 3. General subscription will be conducted on November 8-9. The company aims to be listed on the Korea Exchange by mid-November. The lead underwriter is Mirae Asset Securities, and the joint underwriter is NH Investment & Securities.
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