EcoPro Group experienced a substantial downturn in its second-quarter performance, significantly impacted by the “electric vehicle chasm,” a temporary stagnation in demand for electric vehicles. The South Korean company announced plans to reduce its mid-to-long-term production capacity for cathode materials while continuing investments in precursor facilities to position itself for recovery post-chasm.
On July 30, EcoPro reported consolidated sales of 864.1 billion won (approximately $640 million) for the second quarter, with an operating loss of 54.6 billion won. This represents a sales decrease of 57.2% compared to the previous year, turning last year’s operating profit into a loss. The slowdown in the electric vehicle market led to reduced sales volume, while rising material costs, including lithium, further widened the deficit.
EcoPro’s subsidiaries also faced declines. EcoPro BM, focused on cathode materials, saw sales drop 57.5% to 809.5 billion won and operating profit plummet 96.6% to 3.9 billion won, resulting in a net loss of 8.8 billion won. EcoPro Materials reported an operating loss of 3.7 billion won, with sales falling 76.9% to 66.7 billion won. EcoPro HN recorded a 17.2% sales decrease to 46.8 billion won and a 67.9% decline in operating profit to 3.6 billion won.
The downturn is attributed to the persistent decline in electric vehicle demand and rising core mineral prices, impacting EcoPro’s profitability. Despite these challenges, EcoPro continues investing in key markets like Europe and North America to support OEM localization and compliance with regional regulations.
