South Korean cathode material manufacturers are forced to respond as lithium prices plummet due to oversupply

According to financial information service FN Guide, cathode material manufacturer Ecopro's sales for the October-December period were 1,759 billion won (approximately 192.1 billion yen) and operating profit was 61 billion yen.
The price is expected to decrease by 16% and 66% from the same period last year, respectively, to 6,662,560,000 yen. Other companies in the same industry include POSCO Future M (formerly POSCO Chemical) and L&F (L&F).
) is also expected to deteriorate in performance. The reason for the deterioration in performance is the sharp drop in metal prices. Cathode material manufacturers enter into supply contracts with battery cell manufacturers based on prices linked to metal prices.
There is. For metal prices, prices from approximately 2 to 4 months ago are applied, and these fluctuations are linked to cathode material prices. The price of lithium carbonate in August this year was 200 formers (approx. 399
0 yen), but it fell by about 60% in December. For this reason, when the price of lithium continues to fall like it is now, products produced when the price was high have to be sold at a lower price.
, leading to deterioration in profits. In response to this situation, EcoPro Group has postponed its hiring plans for the Pohang office in the second half of this year. POSCO Future M is a manufacturer of high value-added products.
Focus on production. Following the Gwangyang plant, the Pohang plant has also started producing NCMA (nickel-cobalt-manganese-aluminum) single-crystal cathode materials since December.