EcoPro BM will spend 200 billion won in expanding its battery material producing facilities next year, the company said on Wednesday.
This is more than double its expected CAPEX of 80 billion won to 100 billion won for 2020.
EcoPro BM is transferring its CAM5 line to produce new cathode for SK Innovation, building its new CAM5-N factory and being spent on its new CAM6 line dedicated to supply cathode materials to Samsung SDI.
EcoPro BM will maintain its annual production capacity of 59,000 metric tonnes for cathode materials up to next year.
But from the increased spending in 2021, it will add 30,000 metric tonnes per year to is current capacity for 89,000 metric tonnes per year by 2022.
Out of the total 200 billion, 80 billion won will be spend on its subsidiaries, EcoPro GEM and EcoPro Innovation, which produces precursors for cathode materials and lithium, respectively.
EcoPro CnG will also get an injection of 38 billion won to expand its battery recycling business.
Some of the planned 200 billion won may not be spend in 2021 depending on the construction schedule of CAM5-N and CAM6, however.
EcoPro BM is planning to setup an office in the US, which will be its first foreign company. This is likely to meet demand from client SK Innovation’s Georgia factory.
The US office will focus on securing information, networking and winning research and development order. But EcoPro BM may consider setting up a factory in the US if its customer demands it, the company said.
On the current movements by battery companies attempting to internally supply their own cathode materials, EcoPro BM said they will still need to rely on more technically advanced external materials makers like itself.
EcoPro BM posted 17.9 billion won in operating income and 250.2 billion won in sales for the third quarter, a rise of 82% and 65%, respectively, year-on-year.