L&F Posts KRW 26.5 Billion Operating Loss in Q3 Amid Falling Exchange Rates and Raw Material Prices
Third-quarter revenue of KRW 874.4 billion
NCM and LFP businesses expected to grow in tandem next year
L&F posted an operating loss in the third quarter of 2026 due to the impact of exchange rates and falling raw material prices. However, the company expects its annual shipments to reach a record high this year, driven by increased shipments of high-nickel cathode materials.
L&F said on November 5 that it recorded revenue of KRW 874.4 billion and an operating loss of KRW 26.5 billion in the third quarter of 2026. Despite steady sales of ultra-high-nickel products, a sharp drop in the won-dollar exchange rate and prices of major raw materials pushed the company into the red.
L&F expects shipments of high-nickel products in the fourth quarter to reach a quarterly record. This will be driven by exclusive supply of ultra-high-nickel products and increased sales of cathode materials for 46-mm cylindrical batteries to new customers in North America. As a result, annual shipments of nickel-cobalt-manganese (NCM) cathode materials are expected to rise about 40% from 2025, setting a new record.
Shipment growth is expected to continue in 2027. As supply volumes for existing and new 46-mm battery projects increase, 46-mm products are expected to account for about 40% of total NCM shipments. L&F expects NCM shipments to maintain double-digit growth and reach a record high for the second consecutive year.
The LFP business is also entering a full-fledged growth phase. This year, L&F signed medium- to long-term supply contracts with four customers in total: three domestic battery makers and one overseas customer. Through these agreements, it secured supply volumes equivalent to about 100 GWh of energy storage system (ESS) batteries.
Based on these agreements, L&F expects shipments of LFP cathode materials to reach about 50,000 metric tons in 2027 and more than 60,000 metric tons in 2028. In particular, new contracts have secured additional annual supply volumes of more than 30,000 metric tons starting in 2028. As demand for battery materials to replace Chinese-made products grows in the North American ESS market, L&F is also in discussions with global customers about additional supply.
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Ryu Seungheon, chief financial officer (CFO) of L&F, said, "In 2027, expanded supply for existing and new 46-mm projects and an increase in LFP volumes for North American ESS will gather pace. This will make it a year of new breakthroughs, as growth in both the NCM and LFP businesses translates into substantial revenue growth and improved profitability."
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