Investment frenzy in EV battery stocks brings big shift to market cap ranks

[Courtesy of POSCO Future M]

Rising demand for electric vehicle (EV) batteries has led to significant shifts in the rankings of listed stocks in South Korea’s stock market.

According to the Korea Exchange on Thursday, the number of listed companies with a market capitalization of over 20 trillion won ($15.8 billion) increased by four to a total of 18, compared to the previous year-end.

Notably, POSCO Future M, which was outside the top 20 last year, surged into prominence, along with EcoPro BM and EcoPro, both listed on the Kosdaq market, each surpassing the 20 trillion won mark in market cap.

POSCO Holdings and POSCO Future M, which were outside the top market cap list last year, have now secured the ninth and 10th positions, respectively, overtaking companies like Kia, Naver, Hyundai Mobis, and Kakao. POSCO Future M made an impressive leap from 23rd place to the 10th, climbing 13 steps.

Meanwhile, EcoPro BM and EcoPro are leading the Kosdaq market with market capitalizations of around 35 trillion won and 30 trillion won, respectively. EcoPro BM’s market cap exceeds that of Kospi giants Kia (34.5 trillion won) and Naver (33.5 trillion won).

Furthermore, EcoPro’s market cap surpasses big Kospi companies like Hyundai Mobis (23 trillion won), Kakao (22 trillion won), Celltrion (21.9 trillion won), and LG Electronics (20 trillion won). Other Kospi giants such as KB Financial Group, Samsung C&T, Shinhan Financial Group, SK innovation, Samsung Life Insurance, LG, and KEPCO still fall short of 20 trillion won in market cap.

Companies like POSCO Future M, EcoPro BM, and EcoPro have been grouped together as battery-related stocks and have significantly increased their size amid this year’s investment frenzy led by individual investors. Despite concerns about overvaluation within the market, these stocks continue their upward trajectory, drawing in individual investors.

The share price of POSCO Future M surged from 180,000 won at the end of last year to 480,000 won, marking a 2.7-fold increase. Similarly, EcoPro BM’s share price skyrocketed to 361,000 won 92,000 won, a fourfold surge in just over six months. The most remarkable performance came from EcoPro itself, with its share price jumping from 103,000 won to a staggering 1,118,000 won in the same period, representing an extraordinary tenfold increase, and making it the most expensive stock on a per-share basis.

Combining EcoPro BM and EcoPro’s market caps, the figure soared from 12 trillion won at the end of last year to the current 65 trillion won.

It is not only EcoPro-related stocks that have experienced substantial growth. The combined market cap of listed POSCO Group companies (POSCO Holdings, POSCO DX, POSCO Steeleon, POSCO M-Tech, POSCO International, and POSCO Future M) more than doubled to 93 trillion won.