[Edaily Reporter Shin Ha-yeon ] JEIO(418550), a company specializing in carbon nanotubes (CNT), is halting further expansion of its Ansan Plant No. 2 in response to slowing demand in the electric vehicle market. The company plans to focus on improving the operational efficiency of its existing production facilities and strengthening its financial soundness.

In a regulatory filing on the 30th of last month, JEIO announced that it had decided to suspend the remaining, uncompleted investment in its Ansan Plant No. 2 in light of changes in the domestic and international business environment.

This decision comes as the growth of the electric vehicle market has slowed, leading to stagnant demand for carbon nanotubes, a key battery material. The company has determined that its existing production facilities are sufficient to meet current business demand.

Following the establishment of an annual carbon nanotube production capacity of 1,000 metric tons at its Ansan Plant No. 1, JEIO constructed Plant No. 2 using funds raised through its KOSDAQ listing. Initially, the company had planned to expand the production capacity of Plant No. 2 in two phases, adding 1,000 metric tons each time.

Currently, the first expansion of Plant No. 2 has secured an annual production capacity of 1,000 metric tons. Consequently, the combined total production capacity of Plant No. 1 and Plant No. 2 stands at 2,000 metric tons per year. The investment being suspended this time pertains to the second phase of expansion for Plant No. 2.

JEIO official explained, “Since we have already secured a total carbon nanotube production capacity (CAPA) of 2,000 metric tons at our Ansan Plant No. 1 and Ansan Plant No. 2, there will be no changes to our business operations.”

As demand for carbon nanotubes has slowed due to the electric vehicle “chasm” (a temporary stagnation in demand) that began in earnest in 2024, JEIO has decided to prioritize the efficient operation of existing facilities over expanding new production capacity. The company plans to reduce fixed costs and secure financial stability through this approach.

The company also plans to respond to future increases in demand resulting from the recovery of the electric vehicle market and the expansion of the energy storage system (ESS) market. In particular, anticipating growing demand for high-performance ESS due to the proliferation of artificial intelligence (AI) data centers, the company is pursuing entry into that market.

JEIO officials stated, “As the importance of high-performance ESS grows with the expansion of the AI data center (AIDC) market, carbon nanotubes are set to be fully integrated into the ESS market as well.” The officials added, “Starting in 2027, as carbon nanotube sales expand through entry into the ESS market in addition to the EV market, we expect to achieve a rapid return to profitability by optimizing the efficiency of our existing production facilities.”