EcoPro BM, a South Korean cathode material company, has received Export Credit Agency’s (ECA) funding in the millions of dollars for local investments for the first time. EcoPro BM plans to use the funds to expedite the construction of its cathode material plant in Debrecen, Hungary.
On Jun. 27, EcoPro BM announced that its European subsidiary, EcoPro BM Hungary, had signed an ECA financing agreement with the Export-Import Bank of Korea and the Korea Trade Insurance Corporation. The contract amount is $860 million.
ECA financing involves public export credit agencies such as the Export-Import Bank and the Korea Trade Insurance Corporation providing direct loans, guarantees, and insurance to support the overseas expansion and exports of domestic companies. Based on this support, EcoPro BM plans to borrow funds from five global banks, including BNP and HSBC.
Choi Moon-Ho, CEO of EcoPro BM, stated, “EcoPro BM is encountering increased funding requirements as it progresses with new domestic and international expansions. We are grateful that public export credit agencies have trusted and supported the feasibility of our overseas projects.”
It is expected that EcoPro BM will use these funds to expand its business overseas.
Currently, EcoPro BM is constructing a cathode material production base in Debrecen, Hungary, with an annual capacity of 108,000 tons. The investment required for this project is approximately $1.28 billion, and the Hungarian plant is scheduled to start mass production in the first half of 2025.
EcoPro BM has already secured large-scale contracts for the output from the Hungarian plant. EcoPro BM signed a high-nickel NCA (Nickel, Cobalt, Aluminum) cathode material supply contract with Samsung SDI worth approximately $31.8 billion in December last year.
