L&F Signs 1 Trillion Won LFP Cathode Materials Supply Deal with LG Energy Solution
Supply to run for four years from 2028... Expanding cooperation beyond NCM
Secures supply agreements with all three South Korean battery makers, following Samsung SDI and SK On
L&F has signed a supply contract worth 1 trillion won with LG Energy Solution for lithium iron phosphate (LFP) cathode materials. Following agreements with Samsung SDI and SK On, it has now secured supply contracts with all three of South Korea's major battery makers, strengthening its position in the LFP cathode materials market.
L&F said on November 3 that it had signed a long-term supply contract for LFP cathode materials worth approximately 1.035 trillion won with LG Energy Solution on November 2. The contract runs for four years, from 2028 to 2031. L&F plans to supply the contracted volume by building a new plant.
With this agreement, the two companies will expand their cooperation beyond the nickel-cobalt-manganese (NCM) cathode materials they have supplied to date to include LFP cathode materials. L&F plans to expand its product lineup around two main pillars, high-nickel NCM and LFP, while diversifying its customer base.
The LFP cathode materials market is also growing rapidly as demand for energy storage systems (ESS) rises amid the spread of artificial intelligence (AI) data centers. In particular, the importance of non-Chinese supply chains is increasing as the United States gradually tightens requirements related to Prohibited Foreign Entities (PFEs) for batteries and components used in ESS.
L&F signed medium- to long-term supply contracts for LFP cathode materials with Samsung SDI in March and SK On in September. It has also signed a supply contract with U.S. battery technology company CoreShell and is expanding its business beyond ESS into the defense and mobility sectors.
The company is also increasing its production capacity. Through L&F Plus, its subsidiary dedicated to LFP cathode materials, L&F began mass production at an annual capacity of 30,000 tons in late September. It plans to increase capacity to 60,000 tons per year by the first half of 2027 and consider further expansion in response to future demand.
Hot Picks Today
"Two Spend 500,000 Won in a Flash, Yet Wait Two Hours?" ... 'Dreamland' Shunned by Kids and Foreign Tourists
- The Era of Getting 200 Million Won After 30 Years Is Over... A Japanese Bank's "Perpetual Department Head" Who Just Clocked In Cries Out
- Spain Hit by Its Worst Tragedy... Lee Kangin, Moreno and Real Madrid Join Soccer World in Mourning
- They Said, “Make It Your Home for Life” - Then Suddenly Kicked 200 Passengers Off... What Happened to the Around-the-World Cruise?
- "130 Rice Bowls Sold Out in a Day"... 'Unfiltered Face' Adds 8 Million Won to Night Market Sales: China's Bungeunwoo
Lee Byunghee, chief operating officer (COO) of L&F, said, "As the use of LFP cathode materials expands in the global battery market and demand for supply chain diversification grows, we are extending to LFP cathode materials the trust we have built with LG Energy Solution in the NCM cathode materials sector. We will strengthen our position in the North American market through our differentiated product competitiveness and competitive non-Chinese LFP supply chain."
© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.
