L&F has signed a lithium iron phosphate (LFP) cathode material supply contract with LG Energy Solution worth 1 trillion won. By expanding its cooperation scope from existing high-nickel cathode materials to LFP, the company is accelerating its efforts to capture the non-Chinese battery materials market. ☞[Exclusive] LG Energy Solution signs first trillion-won-scale LFP cathode material contract with L&F
L&F announced on the 3rd that it signed a long-term LFP cathode material supply contract with LG Energy Solution on the 2nd. The contract value is approximately 1.035 trillion won. L&F plans to expand its new factory and supply LFP cathode materials over four years, from 2028 to 2031.
With this contract, the two companies have expanded their cooperation scope to include LFP, following high-nickel nickel-cobalt-manganese (NCM) cathode materials. L&F is pursuing a strategy to diversify its products and customers with high-nickel NCM and LFP as its two pillars.
The market for LFP cathode materials is growing due to increased demand for energy storage systems (ESS) driven by the spread of artificial intelligence (AI) data centers. As the United States strengthens Non-Prohibited Foreign Entity (Non-PFE) requirements for ESS batteries and components, the importance of securing non-Chinese supply chains is also rising.
L&F has been rapidly expanding its LFP customer base this year. The company signed medium- to long-term LFP cathode material supply contracts with Samsung SDI in March and SK On in September. It has also signed a contract with U.S. battery technology firm CoreShell, broadening its supply channels beyond ESS into the defense and mobility sectors.
The company is also expanding production capacity. Its LFP cathode material subsidiary, L&F Plus, began mass production at an annual scale of 30,000 tons from late September last year. It plans to expand production capacity to 60,000 tons annually by the first half of next year and is considering further expansion.
From LG Energy Solution's perspective, this contract allows it to diversify its LFP cathode material procurement sources and strengthen its non-Chinese materials supply chain. The company aims to secure a stable foundation for LFP materials supply in response to the expansion of the North American ESS market.
Lee Byung-hee, Chief Operating Officer (COO) of L&F, said, "We have extended the trust we have built with LG Energy Solution in the NCM cathode material field to LFP cathode materials." He added, "Based on our competitiveness in the non-Chinese LFP supply chain, we will strengthen our position in the North American market."
in INDUSTRY
