Sales drop 26% on year to 576.7 billion won

EV slowdown, Hungary factory launch weigh on results

Indonesia smelter investment seen boosting profitability

[Provided by Ecopro BM]
[Provided by Ecopro BM]

Ecopro BM posted sales of 576.7 billion won ($400 million) and operating profit of 18 billion won in the second quarter, the company disclosed Friday. Sales fell 26 percent on year and operating profit dropped 63 percent.

The sales decline was driven by weaker electric vehicle shipments in Europe and North America. EV demand in North America has stagnated, while in Europe, automakers' plans to change vehicle lineups have pushed up deferred demand.

Shipments for power applications — including power tools and electric bicycles — rose 28 percent quarter-on-quarter. Ecopro BM said growth was driven by an increase in AI-related semiconductor production facilities and rising replacement demand for e-bikes in Southeast Asia.

Operating profit fell as new production lines at the company's Hungary factory came online.

Ecopro BM plans to use the Hungary factory and other assets in the second half of this year to address local demand tied to European regulatory compliance, as well as growing needs from AI-related semiconductor production and data center construction.

The company also plans to raise its in-house sourcing rate for key minerals such as nickel through its investment in the BNSI smelter in Indonesia, strengthening its resilience against external market volatility. By investing in nickel intermediate materials, Ecopro BM aims to maximize the cost competitiveness of its NCM cathode materials, improve its ability to win customer orders and build a solid foundation for medium- to long-term growth.

Once the smelter begins operation in the second quarter of 2027, the company expects earnings from nickel production to be fully reflected in its results, significantly driving a recovery in performance and improved profitability.

"Despite a temporary slowdown in EV demand and continued uncertainty in the external environment, we were able to maintain a profit-generating structure by expanding into new demand sources such as AI data centers and improving our profitability-focused fundamentals," said Kim Jang-woo, chief executive of Ecopro BM. "We will lead the group-level investment in the Indonesia BNSI smelter and the successful mass production ramp-up at the Hungary factory to build a resilient foundation that can withstand market volatility over the medium to long term."


eyre@heraldcorp.com