Eco&Dream announced on the 27th that it received a supply order (PO) for high-nickel NCM precursor from a client.
Eco&Dream is continuously building up its order backlog to lay the foundation for improved performance. The total POs disclosed on the electronic disclosure system since April this year amount to approximately 26.6 billion KRW.
In response to strong demand from its clients, Eco&Dream is producing precursors. The Cheongju plant, with an annual production capacity (CAPA) of 5,000 tons, is in the final stage of ramp-up and is operating at over 90% capacity. Accordingly, the company expects improved profitability in the second quarter and stable operation of the Cheongju plant in the second half of the year.
Meanwhile, as order contracts and shipments continue, Eco&Dream appears unaffected by the electric vehicle market’s demand trough (temporary demand stagnation). Eco&Dream’s precursors are installed in new electric vehicle models, and production and shipment are proceeding simultaneously without time to build up inventory.
Going forward, Eco&Dream expects to remain free from the electric vehicle demand trough due to internal and external factors. Kim Min-yong, CEO of Eco&Dream, emphasized, “For North American electric vehicle products to receive subsidies, due to the IRA, it is necessary to seek decoupling of precursors from China starting as early as 2025.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
