Consolidated sales reach 820.8 billion won, down 11.9% on-year

Semiconductor boom drives growth in environmental and lithium units

Ecopro expands into urban mining, critical minerals for future growth

Ecopro's headquarters building [Ecopro]
Ecopro's headquarters building [Ecopro]

Ecopro Group sustained profitable operations in the second quarter, supported by steady growth in its environmental business amid a semiconductor market boom and improved profitability in its lithium segment.

Ecopro said Tuesday it posted consolidated sales of 820.8 billion won ($574 million) and operating profit of 32.9 billion won in the second quarter. Sales fell 11.9 percent from the same period a year earlier, while operating profit rose 102.7 percent over the same period.

Higher metal prices and favorable exchange rates boosted revenue in the recycling segment and lifted operating profit in the lithium business. However, heavy rainfall in Indonesia temporarily reduced utilization rates at the company's nickel smelter there, weighing on overall profitability.

Ecopro said restoration work at the smelter has been completed and production has resumed, and it expects earnings to recover in the second half of the year.

Ecopro BM, which produces cathode materials, recorded consolidated sales of 576.7 billion won and operating profit of 18 billion won in the second quarter. Sales and operating profit edged down slightly amid sluggish demand in the European electric vehicle market, though growing demand from AI data centers and power applications provided support.

Ecopro Materials, which handles the precursor business, expanded sales to external customers and posted second-quarter sales of 178.8 billion won, up from 166.5 billion won the previous quarter. The unit nonetheless recorded an operating loss of 10.6 billion won after heavy rains temporarily cut utilization rates at its Green Eco Nickel (GEN) smelter in Indonesia.

Ecopro said the GEN smelter's utilization rate is recovering and that profitability is expected to improve over the medium to long term as external conditions shift — including the securing of new customers in North America and the abolition of China's value-added tax refund policy.

Ecopro HN, which operates the eco-friendly materials business, posted second-quarter sales of 51.5 billion won and operating profit of 5.8 billion won, with both figures rising quarter-on-quarter. Orders tied to the semiconductor market boom have been gaining momentum, and sales are gradually expanding on the back of stable supply to overseas LNG power plants.

The lithium business also improved profitability as rising lithium prices were reflected in selling prices. The recycling business continued to grow revenue, benefiting from higher metal prices and a favorable exchange rate.

At the group level, Ecopro is diversifying its future growth base by upgrading its portfolio and expanding into new businesses such as urban mining and semiconductor materials.

Following its nickel smelting project at the IMIP industrial park in Indonesia, the company is advancing the BNSI smelter project to broaden its critical mineral supply chain. Through its Nevada lithium project in the United States and North American supply chain partnerships, Ecopro aims to strengthen its lithium procurement base, improve cost competitiveness in battery materials and respond to shifts in the global supply chain.

The company also plans to continue expanding its spent-battery recycling and urban mining operations. It intends to diversify raw material procurement channels through technology partnerships, establish a leading position in urban mining and build a sustainable growth base through circular resources.

Ecopro is also accelerating its push into future businesses. The company is developing next-generation battery materials — including cathode materials for all-solid-state batteries, solid electrolytes and lithium-metal anodes — while strengthening its semiconductor materials business centered on Ecopro HN.

"Uncertainty in the business environment persists, but we are proceeding as planned with efforts to strengthen supply chain competitiveness and invest in future growth businesses," said Song Ho-jun, chief executive of Ecopro. "We will build a sustainable growth foundation through stable operation of existing businesses and the creation of results from new ones."


eyre@heraldcorp.com