EcoPro BM continues to strengthen its industrial presence in Europe despite the slowdown in the electric vehicle market. The South Korean manufacturer of battery materials has announced that it will launch a second cathode materials production line in Hungary during September, aiming to improve the profitability of its European subsidiary and increase its capacity to 30,000 tons annually by 2027. At the same time, the company highlighted that growth in artificial intelligence data centers is driving demand for another of its business segments: materials for electrical applications.
The key points of EcoPro BM’s expansion in 20 seconds
- EcoPro BM will open a second production line in Hungary during September.
- The plant will produce approximately 10,000 tons this year and aims to reach 30,000 tons annually in 2027.
- The slowdown of electric vehicles in Europe and North America continues to impact its results.
- Investment in AI data centers is boosting demand for materials for electrical applications.
The company reported consolidated revenues of 576.7 billion won (around €360 million at current exchange rates) during the second quarter, a 5% decrease compared to the previous quarter. Operating profit also declined by 14%, to 18 billion won, primarily due to the transition of new models among European manufacturers and the slower pace of the U.S. electric vehicle market.
However, the group believes that the second half of the year will be more favorable thanks to increased production in Europe and the launch of new industrial programs.
Hungary solidifies its position as one of Europe’s major battery hubs
EcoPro BM’s new plant is part of the growing concentration of battery and component manufacturers in Central Europe.
Hungary has become a key investment destination in the sector, thanks to companies like CATL, Samsung SDI, SK On, and BYD, alongside numerous manufacturers of electric vehicle components.
In this context, EcoPro BM began production on its first line in June and is now preparing to activate a second facility.
According to the company:
| Project | Objective |
|---|---|
| First line | Operational since June 2026 |
| Second line | Scheduled to start in September 2026 |
| Planned production 2026 | 10,000 tons |
| Goal for 2027 | 30,000 tons annually |
The company affirms that both manufacturing performance and plant utilization have already reached the expected levels. The losses recorded in the first half mainly reflect typical startup costs, such as depreciation and labor expenses associated with beginning production.
It anticipates that its European subsidiary will achieve quarterly profits in the second half of the year, driven by increased production volumes and improved operational efficiency.
The electric vehicle market continues to show signs of slowdown
Results indicate that the market remains in a phase of adjustment.
Sales of materials for energy storage systems (ESS) fell by 54% compared to the previous quarter, impacted by weak European demand and changes in the North American supply chain.
Meanwhile, its core cathode materials business for electric vehicles saw only a modest 1% growth during the quarter.
This situation aligns with the broader context where many European manufacturers have revised their electric vehicle production forecasts downward due to lower demand, reduced public incentives, and economic uncertainty.
Artificial intelligence emerges as a new growth driver
One of the most notable data points from the results is not related to automotive sectors.
EcoPro BM explained that revenues from electrical applications increased by 28%, driven by three markets:
- AI data centers.
- Electric tools.
- E-bikes.
The growth of AI infrastructure is fueling demand for electrical components and power systems — a trend already reflected by many manufacturers of materials, cables, transformers, and energy equipment.
Although the bulk of EcoPro BM’s business remains tied to batteries, the company sees these segments as new opportunities for growth.
Also developing raw materials and next-generation batteries
Beyond European expansion, EcoPro BM continues advancing its vertical integration.
One of its projects is the construction of a nickel smelter in Indonesia through the BNSI project, with tests starting this year and commercial production planned for Q2 2027.
The company expects to secure approximately 36,000 tons annually of intermediate nickel materials, thanks to its 39% stake in the project.
At the same time, it is developing several technologies for next-generation batteries, including:
- Sulfide-based solid electrolytes.
- Manganese-rich cathodes (LMR).
- Sodium-ion battery materials.
- Silicon anodes.
The solid electrolyte has already passed client validation, and mass production remains scheduled for 2027.
Europe remains strategic despite slowdown
Although the European electric vehicle market is less dynamic than two years ago, EcoPro BM maintains its industrial plans.
The opening of new production lines and the launch of projects for new clients demonstrate that component manufacturers continue to invest locally, expecting demand to rebound in the coming years.
Simultaneously, diversification into AI-related markets shows how electrification and data center expansion are beginning to share parts of the same industrial supply chain.
Frequently Asked Questions
What will the Hungary plant produce?
Cathode materials for batteries, a key component in manufacturing rechargeable batteries for electric vehicles.
When will the second line start operating?
EcoPro BM plans to begin production in September 2026.
What capacity will the plant have?
Production will reach around 10,000 tons in 2026 and increase to 30,000 tons annually in 2027.
Why mention AI in your results?
Because the growing investment in AI data centers is driving the demand for electrical materials, one of the fastest-growing segments this quarter.
