Fire at EcoProBM factory concerns Samsung SDI, SK on

EcoProBM's factory in Cheongju, North Chungcheong Province, is on fire, Friday. Courtesy of National Fire Agency

By Park Jae-hyuk

Samsung SDI and SK on are facing growing concerns over the possible impact of last Friday's fire at EcoProBM's factory in Cheongju, North Chungcheong Province, as they have relied on the Kosdaq-listed battery materials firm for cathode materials.

According to firefighters, the blaze that broke out on the floors accommodating a staff lounge and a boiler room killed one factory worker and injured three others, who were inside the building.

EcoProBM denied damage to the production line of the factory, which has the capacity of producing 30,000 tons of cathode materials annually. However, its stock price plunged 4.66 percent on the day of the fire, leading the company to lose its status as the largest Kosdaq-listed firm in terms of market cap.

Industry insiders warned that Samsung SDI and SK on may face a supply shortage, unless EcoProBM resumes the factory's operation promptly.

Last year, EcoProBM became the largest Korean producer of cathode materials, defeating L&F and POSCO Chemical.

It has been supplying cathode materials to Samsung SDI and SK on through its factories in Cheongju and Pohang, North Gyeongsang Province. The Pohang factory has an annual capacity of 60,000 tons of cathode materials.

In 2020, EcoProBM established a joint venture named EcoProEM with Samsung SDI. Among the nation's three largest automotive battery makers, LG Energy Solution is the only company not purchasing cathode materials from EcoProBM.

Although the automotive battery manufacturers have diversified their suppliers and stocked enough cathode materials to last for at least three months, industry insiders pointed out that firefighters may spend more time than expected on investigating the cause of fire and the amount of damage, making it difficult for the factory to resume its operation.

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