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.
EcoPro, POSCO Chemical looking to overseas plants
EcoProBM's plant in Pohang, North Gyeongsang Province / Courtesy of EcoProBM
By Kim Bo-eun
By Kim Bo-eun
Local battery makers' moves to set up production bases in fast-growing overseas electric vehicle markets is prompting battery material and components suppliers to follow suit. The battery manufacturers are on track to build new factories in the U.S. and to expand plants in Europe because of the growing battery demand from global carmakers.
Samsung SDI and SK Innovation (SKI) have manufacturing sites in Hungary, while LG Energy Solution (LGES) operates one in Poland. LG's battery affiliate also has a battery plant in the U.S. state of Michigan and is looking to build a new factory in the country. It is separately constructing two battery facilities in the U.S. under its joint venture with GM, Ultium Cells. SKI is building two plants in Georgia and will set up more battery production units with a planned joint venture with Ford in the U.S.
Battery material suppliers are actively catching up with such moves given the greater demand in international markets is also an opportunity for them. Establishing production sites nearby battery makers' overseas factories has benefits in terms of reduced logistical costs.
EcoProBM, the top firm in the local cathode materials manufacturing market, filed a report earlier this week outlining plans to raise 400 billion won in capital in the latter half of the year by issuing new shares.
The funds are to be used to build an overseas production base ― EcoProBM currently only has manufacturing facilities here. Upon announcing its first quarter earnings to investors in May, the company said it aims to operate a cathode material plant in Europe by 2025.
"EcoProBM's capital increase signifies investments into overseas cathode material production sites and shows the company has boosted its capex goal," Korea Investment & Securities analyst Kim Jung-hwan said in a report.
In November last year, the company set up a subsidiary in the U.S. state of Georgia, which is currently preparing to build a factory there. EcoProBM is set to supply its material to SKI.
POSCO Chemical, which produces cathode and anode materials for EV batteries, said in April it was exploring the possibility of building a plant in the U.S. The firm is operating a taskforce that is reviewing sites for overseas plants in Europe and the U.S. The POSCO affiliate is aiming to produce 110,000 tons of cathode material at its overseas plants on an annual basis.
The company supplies the GM-LGES tie-up Ultium Cells and also separately to LGES.