L&F to Begin Commercial Operations of Saemangeum Precursor Plant in Q4...Completes Vertical Integration of Battery Materials

Annual NCM Precursor Production Capacity of 40,000 Tons

Strengthening Cost Competitiveness and Supply Chain Stability

Enhancing Responsiveness to Global Customers

LN Energy & Frontier (L&F) is on the verge of completing a vertically integrated system that extends from precursor production to cathode materials, as its precursor production facilities prepare for commercial operation.

LS-L&F Battery Solution (LLBS) exterior. L&F

On July 9, L&F announced that LS-L&F Battery Solution (LLBS), its joint venture with LS Group, has completed the construction of an NCM (nickel, cobalt, manganese) precursor production facility with an annual capacity of 40,000 tons at the Saemangeum National Industrial Complex in North Jeolla Province. The company plans to begin commercial operations in the fourth quarter of this year.

Once LLBS enters full-scale operation, L&F will complete its vertically integrated value chain from precursors to cathode materials. Through this, the company aims to establish a unified operating system covering everything from raw material procurement to production, thereby enhancing cost competitiveness and profitability.

The electric vehicle (xEV) market has recently shown gradual signs of recovery, while the energy storage system (ESS) market has entered a phase of structural growth. As a result, the stability of battery material supply chains and the ability to respond to global regulations have become key evaluation criteria for major customers.

L&F plans to strengthen its responsiveness to global customers, particularly in North America and Europe, and expand new orders and diversify its customer portfolio by building a Non-PFE (non-prohibited foreign entity) based precursor supply chain through LLBS.

Leveraging LS Group's capabilities in raw material sourcing and smelting/refining technologies accumulated in the non-ferrous metals and power/energy sectors, L&F will establish a vertically integrated system spanning from nickel sulfate to precursors and cathode materials. Through this partnership, the two companies aim to enhance material competitiveness and supply chain stability, and to secure the competitiveness and long-term growth foundation of the domestic precursor industry based on Korean technology.

Despite the slowdown in the electric vehicle market, L&F has maintained a high plant utilization rate and continued to improve its performance. With the internalization of precursor production, the company will further reduce external dependence and strengthen the stability of its business structure.

Je Hong Heo, CEO of L&F, stated, "LLBS is a core business in our mid- to long-term growth strategy, providing a foundation to secure both cost competitiveness and supply chain stability. By collaborating with LS MnM, we will establish a production system from raw materials to precursors and cathode materials, continuously strengthening our competitive edge in the global market and laying the groundwork for the joint growth of both companies."

He added, "We will concentrate company-wide capabilities—including technology, talent, and capital—to enhance LLBS's initial competitiveness and proactively respond to the precursor demand of global customers, thereby achieving sustainable growth and increasing corporate value."

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