Mirae Asset Raises Chunbo Target Price on F-Electrolyte Supply for Tesla's Cybercab

Mirae Asset Securities raised its target price for Chunbo, citing the start of a key electrolyte supply for a major North American EV maker's 'Cybercab' robotaxi.

This positive outlook is supported by Tesla's tangible robotaxi roadmap, U.S. IRA policies favoring non-Chinese suppliers, and a rebound in raw material prices.

However, future performance depends on the actual production speed of the Cybercab and Chunbo's ability to successfully pass on higher raw material costs to its customers.

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Mirae Asset Securities recently raised its target price for Chunbo, a key materials company, sending a positive signal to the market.

The core reason for this upward adjustment is the news that Chunbo has started supplying a key material, 'F-Electrolyte (LiFSI)', for the next-generation robotaxi, the 'Cybercab', being developed by a major North American EV company, widely believed to be Tesla. This has transformed the Cybercab from a futuristic concept into a project generating real demand, making Chunbo a direct beneficiary.

So, what's behind this optimism? Several factors are at play. First, there's the progress of the Cybercab project itself. After its unveiling in October 2024, the first vehicle rolled off the production line in February 2026. This tangible progress signals that the demand for core materials like Chunbo's F-Electrolyte is becoming a reality, not just a forecast.

Second, the U.S. Inflation Reduction Act (IRA) provides a significant tailwind. The policy offers tax credits for EVs that use parts and minerals from North America or allied countries, effectively creating a hurdle for Chinese competitors. This gives a strategic advantage to Korean suppliers like Chunbo. The temporary exemption for certain materials until 2027 gives them time to solidify their position in the North American supply chain.

Third, the rebound in raw material prices, such as lithium, is also a positive factor. While rising costs can be a burden in the short term, they also provide justification for increasing product prices in the latter half of the year. If Chunbo can successfully pass on these costs, it could lead to improved profitability.

Of course, it's not all smooth sailing. The company's current valuation is somewhat high. To justify the new target price, Chunbo's earnings need to grow significantly, reaching levels seen during the 2022 boom. This hinges on the Cybercab's mass production proceeding without a hitch and the successful negotiation of price increases. The road ahead requires careful observation of these key variables.

F-Electrolyte (LiFSI): A high-performance electrolyte salt used in next-generation EV batteries. It improves battery life and charging speed, especially in cold conditions.
EV/EBITDA: A valuation metric that compares a company's Enterprise Value (market capitalization + debt - cash) to its Earnings Before Interest, Taxes, Depreciation, and Amortization. It's often used to value capital-intensive industries.
IRA (Inflation Reduction Act): A U.S. law that includes tax credits for electric vehicles, aimed at promoting domestic manufacturing and reducing reliance on Chinese supply chains.