[SMM Analysis] Ecopro's Q2 2024 Revenue Declines, H2 Electric Vehicle Market Outlook Grim

Published: Aug 14, 2024 18:37

Source: SMM

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Ecopro BM, a producer of cathode active materials, reported Q2 2024 revenue of 809.5 billion won, down 17% QoQ and 58% YoY. Ecopro Materials, a precursor company, reported Q2 2024 revenue of 66.7 billion won, down 16% QoQ and 77% YoY.

Ecopro Group's stock has been "continuously declining" due to the impact of Q2 performance. The poor performance, caused by the deteriorating battery industry, has become a reality. Coupled with unfavourable factors from Tesla, investor sentiment is declining. Ecopro BM, a producer of cathode active materials, reported Q2 2024 revenue of 809.5 billion won, down 17% QoQ and 58% YoY. Ecopro Materials, a precursor company, reported Q2 2024 revenue of 66.7 billion won, down 16% QoQ and 77% YoY. The main reasons are the reduced demand in the electric vehicle market and the resulting decrease in sales of battery materials and precursors.

Looking ahead to Q3 2024, Ecopro Group is preparing to expand its lithium sales to new customers, signing a long-term supply agreement with Samsung SDI, and expanding its cooperation with Hyundai Glovis and Cirba Solutions. The political situation in the United States, with the upcoming presidential election in November, also adds uncertainty to the electric vehicle market. If Republican presidential candidate Trump is re-elected, he may abolish electric vehicle subsidies.

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