Ecopro Reports Fourth Consecutive Quarterly Losses: "Apologies for Poor Performance"

"Efforts to Expand Competitiveness of Ternary Batteries"

Ecopro recorded losses for the fourth consecutive quarter due to the electric vehicle chasm (temporary demand slowdown).

Ecopro announced on the 1st that it posted an operating loss of 108.8 billion KRW on a consolidated basis in the third quarter. It explained that the decrease in product sales and additional provisions for inventory valuation losses due to the decline in mineral prices had an impact.

Sales amounted to 594.3 billion KRW, down 31% from the previous quarter.

Ecopro BM, which manufactures cathode materials, recorded sales of 521.9 billion KRW in the third quarter, down 36% from the previous quarter. It posted an operating loss of 41.2 billion KRW after reflecting an inventory asset valuation loss of 18.8 billion KRW due to the impact of exchange rates and falling mineral prices.

Ecopro Materials, which manufactures precursors, posted sales of 65.9 billion KRW in the third quarter, similar to the previous quarter (66.7 billion KRW). Operating losses increased to 38.5 billion KRW compared to -3.7 billion KRW in the previous quarter. Although precursor sales volume increased by 21% from the previous quarter, the selling price decreased by 1.5%.

Sales and operating profit of Ecopro HN, an eco-friendly total solution company, both increased. Third-quarter sales were 56.1 billion KRW, up 20% from the previous quarter, and operating profit was 5.7 billion KRW, up 58% compared to the previous quarter.

Ecopro explained that from 2025, product sales are expected to increase due to stricter carbon emission regulations for electric vehicles in Europe and the operation of new factories by major customers in the North American region.

An Ecopro official said, "We apologize to our shareholders for recording poor performance as mineral prices continue to decline and the upstream industry shows no signs of recovery," adding, "We are continuously making efforts to enhance the intrinsic competitiveness of ternary batteries through improving technological competitiveness and cost innovation."