EcoPro's cathode materials plant is under construction in Debrecen, Hungary, in this undated file photo. Courtesy of EcoPro

Korean battery makers and materials producers are still betting on the European market, despite a worsening outlook for the continent's electric vehicle (EV) industry after a recent swing to the far right, according to industry officials, Monday.

The Korea Battery Industry Association (KBIA) plans to host the second edition of the InterBattery Europe trade show in Munich, Germany, from Wednesday to Friday.

Although SK On, POSCO Future M and L&F will be absent from the event again this year, EcoPro and Lotte Energy Materials decided to make their debuts. LG Energy Solution (LGES) and Samsung SDI will participate in the exhibition as they did a year earlier.

In particular, EcoPro will promote its Hungarian cathode materials plant, which will go into operation in 2025.

"We hope to introduce our excellent products and technologies and to diversify our customers through direct communications with buyers in Europe, which takes the lead in the global EV market," an EcoPro official said.

Lotte Energy Materials will display its copper foil and various other battery materials. This is the first time for the company to participate in a trade show since it was renamed last year following Lotte's acquisition of Iljin Materials in 2022.

"InterBattery Europe will be the place for us to showcase our high-end copper foil technologies," Lotte Energy Materials CEO Kim Yeon-seop said. "We will increase our share in the high-end market by introducing the excellence of our products to global clients preparing for the development of next-generation batteries."

An illustration of Lotte Energy Materials' exhibition booth for InterBattery Europe 2024 / Courtesy of Lotte Energy Materials

However, major European countries have recently cut their subsidies for EV purchases.

In addition, the European Union is expected to delay its planned ban on internal combustion engine vehicles to 2040 from 2035, as far-right parties won in the recent EU Parliament elections.

"Policies create demand in the EV industry," Eugene Investment & Securities analyst Han Byung-hwa said. "It is difficult to anticipate supportive policies from the EU and the U.S. for a while."

The analyst also advised investors to sell their EcoPro BM shares, lowering the stock price target of the EcoPro affiliate to 150,000 won ($109) from 200,000 won.

Amid the growing skepticism about the EV industry, LGES and Samsung SDI decided to focus more on introducing their energy storage system (ESS) technologies during this year's InterBattery Europe.

"The European ESS market has been growing rapidly these days, so the region is strategically important for the Korean battery industry," KBIA Vice Chairman Park Tae-sung said.