Ecopro BM stayed profitable in the first quarter on recovering European electric vehicle (EV) volumes and expanding demand for energy storage systems (ESS).

Ecopro BM said on Tuesday it posted first-quarter consolidated revenue of 605.4 billion won and operating profit of 20.9 billion won. Revenue fell 3.9 percent from 629.8 billion won a year earlier, while operating profit rose 823 percent from 2.3 billion won.

From the previous quarter, revenue rose 21.8 percent and operating profit fell 49.6 percent. Net profit came in at 12.2 billion won, turning positive from a year-earlier loss of 10.0 billion won.

Higher supplies of cathode materials for EVs in Europe and expanding ESS demand on the spread of artificial intelligence (AI) infrastructure drove results. Cathode materials sales for ESS rose 140 percent from a year earlier.

Volumes for power applications such as power tools and electric bicycles rose 44 percent from a year earlier, supporting results as semiconductor production facilities expanded and construction of large data centres increased.

Ecopro BM completed a cathode materials plant with annual capacity of 54,000 tonnes in Debrecen, Hungary, in November last year. The company said it was a move to preemptively respond to Europe’s environmental regulations and intra-regional supply chain policies. The Hungary plant is set to start full-scale mass production in the first half of this year. If mass production starts in the second quarter, it will secure a production base that can directly respond to new demand such as increased EV new-model sales by European original equipment manufacturers (OEMs).

The European Union (EU)-UK Trade and Cooperation Agreement (TCA) is set to mandate the use of EU-made cathode materials after 2027. Supply chain requirements being strengthened, including the Critical Raw Materials Act (CRMA) and the Industrial Acceleration Act (IAA), are expected to work in favour of Ecopro BM, which has a local production system in Europe.

Ecopro BM plans to speed up sample supplies for new projects alongside mass production at its Hungary plant and seek to secure new customers in the European market.

Kim Jang-woo (김장우), Ecopro BM’s representative director for management, said, "We will continue to expand supplies of high value-added cathode materials in line with the spread of AI and the recovering EV market." He added, "Through successful mass production at the Hungary plant, we will establish ourselves as a key player in the intra-European supply chain and maintain an unwavering growth trend."