South Korean battery makers Samsung SDI and EcoPro BM shares rallied 5 to 6 percent Friday as their joint-venture facility to produce cathode materials in the world’s largest capacity became ready for operation.

Samsung SDI shares gained 5.77 percent to trade at 623,000 won ($433.45) by midday Friday, and EcoPro BM up 4.61 percent to 106,700 won. EcoPro BM’s holding entity EcoPro shares also rose 0.96 percent to 147,900 won.

The two on Friday celebrated the construction of their JV cathode materials plant in Pohang capable of turning out 54,000 tons per year, which would be largest in the world as a single factory.

The production site spanning over 15,058 square meters (18,009 square yards) at the Eco Battery Pohang Campus will become fully operational in the first quarter of next year after a test run. Materials produced from the new factory will be entirely supplied to Samsung SDI.

The CAM7 plant has been established with facility, quality and logistics automation system for improved production efficiency, said EcoPro BM. Accident avoidance designing has been applied as well to reduce any risk to production and maximize the operational stability.

The construction celebration event was attended by Pohang City Mayor Lee Kang-deok, EcoPro Chairman Lee Dong-chae, Samsung SDI CEO Choi Yoonho, and about 300 officials from related entities.

“We’ve started creating synergy by combining EcoPro’s high-nickel manufacturing technology and Samsung SDI’s battery designing and production technology. Production from the new CAM7 factory will help us raise the technical competitiveness as well as the price appeal for bigger difference from industry peers,” said Park Jong-hwan, CEO of EcoPro EM.

EcoPro has been building the Eco Battery Pohang Campus in Pohang since 2017 as its manufacturing base for all battery related business. It has injected about 1.2 trillion won so far this year and created 1,600 new jobs.

EcoPro BM on Tuesday disclosed that its operating profit for the third quarter soared 246.3 percent on year to 140.9 billion won, with sales of 1.56 trillion won surging 283.1 percent on output expansion and favorable forex conditions.

“Its third-quarter cathode materials shipments are estimated to have gained 18 percent from a quarter ago thanks to early operation of manufacturing lines,” said Park Jin-su, an analyst at Shinyoung Securities.

EcoPro also saw its operating profit up 355.5 percent to 210.3 billion won while sales climbed 299.5 percent to 1.63 trillion won.

By Pulse

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