Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Will EcoProBM challenge Japan's Sumitomo in high nickel tech?
Officials of Samsung SDI and EcoProBM participate in a plant groundbreaking ceremony for a new joint venture, EcoProEM, in Pohang, North Gyeongsang Province, Nov. 18. / Courtesy of Samsung SDI
By Kim Bo-eun
By Kim Bo-eun
Industry insiders are watching local battery materials maker EcoProBM, after its aggressive investments in production facilities in partnership with major battery cell manufacturers.
EcoProBM is the top ranking firm in the local cathode material manufacturing market. Globally, it ranks second, after Japan's Sumitomo Metal. A cathode is one of the four major components in an EV battery, and has a great impact on performance, safety and price.
Japan's Sumitomo only supplies nickel, cobalt and aluminum (NCA) materials to Tesla. EcoProBM produces both NCA and nickel, cobalt and manganese (NCM).
EcoProBM partnered with Samsung SDI in February to set up a joint venture, EcoProEM, to construct a cathode material plant in Pohang, at a cost of 180 billion won, with plans to begin production by the first quarter of 2022. The plant will exclusively supply 30,000 tons of NCA annually to Samsung SDI.
The two firms aim to increase their investment to 400 billion won by 2025 to more than double annual production.
Battery makers are aiming to boost performance to increase the range of EVs with high-density, high-power high nickel batteries, and as a result boost their market share.
Given the growth forecast for the global EV market, industry analysts view that EcoProEM will be able to get a larger piece of the pie in the market for battery materials. The global market for NCA materials is set to grow to 250,000 tons in 2022, from 100,000 tons in 2019.
Sumitomo had a 42 percent market share in high nickel cathode material in 2019. EcoProBM followed with 17 percent.
Sumitomo's market share is down from 54 percent in 2018, which is attributed to a stagnant supply to battery maker Panasonic. Sumitomo only supplies materials to Panasonic, which makes batteries for Tesla.
EcoProBM posted its highest sales to date at 250.2 billion won ― with an operating profit of 17.9 billion won ― in the third quarter of this year. The company made 98.2 billion won from the sales of high nickel cathode material, up 214 percent from the same period in 2019.
EcoProBM CEO Kim Byeong-hoon said, "Major carmakers' release of new EV models and the expansion of demand for NCM and NCA contributed to the improvement in earnings," in a conference call.
The company set up a subsidiary in the U.S. to supply SK Innovation's Georgia plant. SK Innovation is set to supply NCM batteries to Ford and Volkswagen, and EcoProBM will be producing the cathode material.
Kim referred to the U.S. subsidiary as a strategic base and that new production lines could be set up.
By 2023, when the plants currently under construction are completed, EcoProBM's annual production capacity will be boosted to 180,000 tons, from 55,000 tons this year.