L&F Turns Profitable on High-Nickel Performance, Operating Profit Reaches KRW 117.3 Billion

Simultaneous Increase in Shipments and Selling Prices

Growth Momentum Expected to Continue in the Second Quarter

Global secondary battery materials company L&F announced its 2026 first quarter results on April 30, reporting sales of KRW 739.6 billion and operating profit of KRW 117.3 billion.

L&F Corporate Identity (CI)

Sales increased by 20% compared to the previous quarter and by 103% year-on-year. Operating profit turned positive year-on-year and surged by 42% quarter-on-quarter, significantly exceeding market expectations.

The company explained that the increase in operating profit was driven by a recovery in utilization rates due to expanded shipments of high-nickel products, improved profitability resulting from higher selling prices and exchange rates, and additional gains from inventory valuation reversals amid a rebound in raw material prices.

By product, exclusive supply of Ultra-HINI (Ultra High Nickel) products and expanded shipments of new 46-pi (46mm diameter cylindrical battery) products drove performance. Shipments of high-nickel products reached a quarterly record high for the third consecutive quarter. Total shipments in the first quarter increased by approximately 12% from the previous quarter, nearly doubling the shipment guidance presented at the beginning of the year.

L&F expects demand centered on Ultra-HINI products to continue in the second quarter, with shipment growth and performance improvement trends sustained. The company also forecasts further profitability gains as selling prices rebound in line with rising raw material costs. Even excluding inventory-related reversal factors, the company explained that profit from core operations is expanding, driven by the recovery in utilization rates.

Additionally, the company anticipates that the recent recovery in EV (electric vehicle) demand driven by rising oil prices will further support its differentiated growth within the industry.

L&F is also ramping up its LFP (lithium iron phosphate) business to respond to the ESS (energy storage system) market. The company is set to complete a factory with an annual capacity of 30,000 tons in the second quarter and plans to begin mass production by the end of the third quarter. By the first half of 2027, it aims to establish a total production system with a capacity of 60,000 tons.

In the first quarter, L&F became the first non-Chinese company to secure a supply contract for LFP (lithium iron phosphate) and is pursuing additional customers to respond to expansion in the North American ESS (energy storage system) market and supply chain restructuring. The company plans to strengthen its competitiveness by expanding LFP supply for EVs (electric vehicles) and developing a precursor-free process (method that does not use precursors).

Chief Financial Officer Ryu Seungheon stated, "In the first quarter, both volume growth centered on high-nickel products and increases in selling prices led to a clear improvement in profitability. In the second quarter, we will continue to achieve stable performance improvement based on shipment growth, and we will diversify our business portfolio through a two-track strategy focusing on NCM (nickel, cobalt, manganese) and LFP."

This content was produced with the assistance of AI translation services.