EcoPro replaces affiliate CEOs to defend margins in EV slump

EcoPro named new chief executives across its core battery material affiliates on Oct. 1, 2026, accelerating its annual executive reshuffle by two months to counter a prolonged electric vehicle market downturn.

The group manages extensive cathode supply assets, including EcoPro BM's 1.3 trillion won ($970 million) Debrecen facility in Hungary. The site holds 54,000 metric tons of annual cathode capacity, accounting for roughly a quarter of group European production targets.

Holding company EcoPro Co. appointed Vice President Choi Sang-woon and EcoPro BM co-chief executive Kim Jang-woo as joint chief executives. The two executives will oversee group financial management and liquidity controls.

The personnel changes shift the materials producer from aggressive capacity expansion toward balance sheet preservation. Incoming leadership will draft 2027 operating budgets immediately rather than waiting for the traditional December personnel cycle, the company said in a regulatory disclosure.

Outgoing holding company chief executive Song Ho-jun will transition to lead cathode manufacturing unit EcoPro BM. Song will concurrently serve as chief executive of EcoPro EM, a specialized cathode joint venture.

EcoPro BM owns 60% of EcoPro EM, while battery manufacturer Samsung SDI holds the remaining 40%. The affiliate operates dedicated cathode lines supplying Samsung SDI's prismatic automotive battery cells.

Song takes operational responsibility for overseas manufacturing projects as global electric vehicle adoption slows. EcoPro BM started commercial production on its first Debrecen line in June, while readying a second line for output.

The company committed 40 billion won ($30 million) to modify Hungarian production lines for nickel-cobalt-manganese cathode chemistry. The retrofit allows the plant to supply European automotive manufacturers by late 2027.

Song will also supervise construction of the 1.2 trillion won ($895 million) Becancour cathode facility in Quebec, Canada. EcoPro Cam Canada LP directs the facility, designed to produce 45,000 metric tons of cathode material annually.

Battery maker SK On and Ford Motor Company co-fund the Canadian factory. The entire 45,000-ton annual output will supply SK On batteries destined for Ford electric vehicles under long-term off-take agreements.

The management realignment extends to raw material procurement. Song will steer group equity investments in the BNSI nickel smelting operation in Indonesia, securing intermediate nickel feedstock to reduce external refining premiums.

At environmental and specialty materials subsidiary EcoPro HN, the group promoted EcoPro EM head Park Jong-hwan to president and chief executive. Park will lead product expansion into battery additives and semiconductor materials.

EcoPro HN currently derives most of its revenue from industrial greenhouse gas abatement systems. The appointment aims to scale fine chemical lines alongside environmental equipment supplied to domestic semiconductor fabrication facilities.

Upstream unit EcoPro Materials also faces operational adjustments at its Pohang precursor plant. The unit previously deferred 202 billion won ($150 million) in equipment outlays to align precursor output with lower cell demand.

South Korean battery material suppliers have absorbed severe margin compression during 2025 and 2026. Declining lithium benchmark prices triggered continuous inventory valuation losses across precursor and active cathode processing operations.

EcoPro previously targeted 710,000 metric tons of total annual cathode manufacturing capacity by 2028. The early leadership transition reflects a corporate strategy centered on cash preservation, line automation and operating cost reduction.

In South Korea, the group operates its integrated Closed Loop Eco-System at Pohang. The industrial hub houses lithium refining, precursor fabrication, cathode synthesis and recycling to reduce transport logistics costs.

Consolidating cathode operations under Song links active material plants directly to upstream chemical units. The unified command structure seeks to remove duplicate overhead and lift manufacturing yields across Asian and European operations.

The executive appointments require formal ratification by affiliate boards and shareholder votes, expected at the next annual general meetings in March 2027, according to company regulatory filings.

The company announcement did not publish exact dates for shareholder meetings to confirm directorships, and EcoPro has not confirmed revised 2027 capital expenditure guidance.