South Korean electric vehicle (EV) battery cathode manufacturer EcoPro Company is expanding production capacity at its battery materials processing plant in Pohang, North Gyeongsang province, to target a growing share of the fast expanding global EV market.

Its EcoPro Innovation subsidiary has begun construction of a second high purity lithium hydroxide material (LHM) plant in the Yeongil Bay Industrial Complex, following a ground breaking ceremony.

EcoPro Innovation expects to complete construction by the second half of 2023 which will double lithium hydroxide capacity to 26,000 tons per year and increase revenue to around KRW2.1trn (US$1.6bn) by 2024.

CEO Kim Yoon-tae said in a statement: “Lithium is a material used in all types of secondary batteries and global demand for EVs is currently exploding. We expect the construction of LHM Plant 2 will help stabilise supplies of lithium hydroxide for high quality secondary batteries for our customers.”

EcoPro Group, founded in 2016, has set a target for consolidated revenue to almost double this year to KRW10trn (US$7.8 billion), as it focuses on the EV battery market.

Most of the sales will be at its cathode materials manufacturing subsidiary Ecopro BM Company which generated revenue of KRW5.3trn last year. At the end of 2021, the company had capacity for 75,000 tons of ternary cathode materials. It plans to spend KRW7.1trn to expand tenfold by 2027, to generate revenue of KRW27trn.