South Korean battery cathode maker EcoPro BM plans to spend 240 billion won in capital expenditure this year, a rise of 20% from 2020.
The company is also expecting sales to increase by 40% this year compared to last year’s 855.2 billion won, it said at its fourth quarter conference call on Wednesday.
EcoPro BM will be spending 100 billion won on its CAM5-N factory, which supplies cathode for SK Innovation. Around 140 billion won will be spent on CAM6, run by EcoPro EM, the company’s joint venture with Samsung SDI.
EcoPro BM is seeing increased demand from expanded sales of electric vehicles.
Demand from power tools and wireless cleaners were also recovering after the initial wave of the pandemic. These products uses cylinder batteries. EcoPro BM supplies nickel, cobalt and aluminum (NCA) cathode to Samsung SDI, the world’s largest cylinder battery maker.
EcoPro BM’s cathode production capacity will be 59,000 metric tonnes, same as it was in 2020. CAM6’ 30,000 metric tonnes will be added in 2022. The company is aiming to secure a production capacity of 180,000 metric tonnes by 2025.
EcoPro EM is planning to build another factory, called CAM7, that will also add 30,000 metric tonnes in annual production capacity. Around 150 billion won will spent in building the new factory.
EcoPro BM is also planning to build factories based abroad. It has setup offices in the US and Europe for this. It plans to first construct a factory at Hungary. Precise details for the plan will be drawn up by early next year at the latest. Hungary is where Samsung SDI and SK Innovation have battery factories.
Last year, EcoPro BM posted sales of 855.2 billion won and operating income of 55.7 billion won, a rise of 39% and 50%, respectively, from 2019.