EcoPro HN to boost investment in secondary battery material businesses

Panoramic view of the EcoPro HN headquarters located in Ochang, Cheongju, Chungbuk. [Courtesy of EcoPro HN Co.]

EcoPro HN Co., an affiliate of South Korea’s leading cathode material producer EcoPro Group, announced on Thursday that it will expand its investment in secondary battery material businesses, such as crucibles for cathode material calcination and dopants as additives.

The company aims to achieve 1 trillion won ($749 million) in sales by 2028, based on these new business investments.

EcoPro HN announced on Thursday that it plans to raise 200 billion won through a rights offering to invest in facilities for new businesses related to secondary batteries and semiconductor materials, as well as research and development (R&D) equipment.

The rights offering will be conducted as a shareholder allocation followed by a public offering of unsubscribed shares.

A total of 5.67 million new shares will be issued at a proposed price of 35,300 won per share.

The final size and price of the rights offering will be confirmed on December 2, 2024, with the new shares expected to be listed on December 26.

EcoPro Co., the largest shareholder of EcoPro HN with a 31.40 percent stake, plans to participate in the subscription for 120 percent of the allocated amount, including an additional 20 percent over-subscription.

The final subscription quantity will be decided by EcoPro’s board of directors before the subscription date.

EcoPro HN plans to use the proceeds of the capital increase to strengthen the competitiveness of its existing business while pioneering new business areas.

The company will allocate 60 billion won to facility investments for the development and production of electrolyte additives, crucibles, and dopants as part of efforts to enter the secondary battery material market.

It will also use 30 billion won for semiconductor material facilities and 20 billion won for R&D equipment to enhance technological development capabilities.

It will also invest 40 billion won in building production facilities for next-generation honeycomb catalysts, which are used to remove greenhouse gases generated in semiconductor manufacturing processes.

Another 20 billion won will be allocated for the production of next-generation chemical filters and line improvements.

“We plan to enhance our technological competitiveness by advancing our existing environmental industry and expanding into secondary battery materials,” said EcoPro HN Chief Executive Officer Kim Jong-seop. “We aim to achieve 1 trillion won in sales by 2028 based on the funds raised through this rights offering.”