Ecopro BM eyes up to 50,000-ton LFP cathode expansion, nears multi-trillion-won orders with global automakers

Ecopro BM is pushing ahead with plans to scale up its lithium iron phosphate (LFP) cathode mass-production line by up to 50,000 tons, and said it is in the final stages of locking in orders worth trillions of won from global automakers.

Lee Hyeong-geun, executive director and head of Ecopro BM's sales division, said during the company's third-quarter earnings conference call Thursday that it plans "to move forward in earnest with expanding a competitive LFP mass-production line of up to 50,000 tons" and that it aims "to secure competitiveness on par with Chinese manufacturers."

Lee also said the company is working to finalize a supply contract for its existing 4,000-ton LFP line. "We are coordinating with our customer to wrap up the supply agreement," he said, adding that the company would communicate the details separately once the deal is confirmed.

Ecopro BM reported consolidated third-quarter sales of 557.9 billion won ($416 million) and operating profit of 12 billion won, down 11 percent and 76 percent, respectively, from the same period a year earlier.

The company attributed the sales decline to sluggish electric vehicle demand in North America and ongoing inventory drawdowns at customers following model-change plans by European automakers. The drop in operating profit reflected a temporary shutdown at its Hungary factory and the impact of a weaker exchange rate.

Bang Han-min, executive vice president and head of Ecopro BM's strategy division, said the North American EV market is expected to remain depressed following the elimination of consumer subsidies, and that volume stagnation will likely persist due to model changes by major European original equipment manufacturers.

On the order front, Lee said the company "is currently in the final stages of confirming orders worth trillions of won with global automakers." Lee also said Ecopro BM has signed a letter of intent with a global battery cell manufacturer to supply high-nickel cathode materials worth up to $900 million, targeting a supply start in 2028. "We plan to supply using production facilities in Hungary and South Korea, and we expect to finalize a long-term supply contract by the end of this year," he said.

The company forecast continued improvement in non-EV segments, including power applications and ESS, driven by new demand from AI data center expansion and drones.

Bang said one-time costs stemming from the Hungary factory shutdown will inevitably affect the bottom line. "Some of the costs were reflected in the third quarter, and we expect the amount in the fourth quarter to exceed what was booked in the third," he said.

Bang noted growing demand for locally sourced materials within Europe, and said the company plans to expand Hungary's output to 30,000 tons in 2027, with full-capacity operations expected from 2028 onward. On overall shipments for next year, Bang said the company is targeting double-digit percentage growth over this year's levels.

On the Indonesian nickel smelter project, known as BNSI, Bang said trial operations are set to begin at the end of this year, with sequential commissioning from the first half of next year. "The project is proceeding on schedule without any setbacks," he said. The company plans to channel approximately 700 billion won raised through a rights offering into BNSI starting in November, disbursing the funds in stages.

Bang said the facility is expected to operate at 50 to 60 percent capacity in its first year of operation. "Once operations are fully ramped up, we expect annual sales of approximately $1.7 billion and an operating profit margin of at least double digits," he said. Bang added that nickel ore prices have been stable and that sulfur prices, which had surged amid the Strait of Hormuz crisis, have recently been trending lower.

The company is also preparing next-generation materials. Choi Yun-yeong, executive vice president and head of Ecopro BM's development division, said solid electrolytes have completed customer quality verification and are on track for full-scale mass production in 2027. The company signed an MOU last month with a customer to cooperate on materials development for all-solid-state batteries.

On lithium-manganese-rich (LMR) cathode materials, Choi said the company can leverage its existing ternary production lines and is optimizing process conditions, adding that it is continuously preparing to enable a rapid transition to mass production once a customer's material specifications are confirmed.

For sodium-ion battery cathode materials, Choi said the company has secured a dedicated mass-production line with an annual capacity of 1,000 tons for layered cathode materials and is currently conducting mass-production verification. Ecopro BM previously launched the "K-Sodium Alliance" together with Soulbrain and Aekyung Chemical.