L&F announced on the 5th that it recorded revenue of 874.4 billion won and an operating loss of 26.5 billion won for the third quarter of this year. While revenue increased by 34% compared to the same period last year, operating profit turned into a deficit.
The company explained that profitability deteriorated due to the decline in the won-dollar exchange rate and major raw material prices. However, cumulative operating profit through the third quarter of this year remained in the black at 111.6 billion won.
L&F projected that its high-nickel product shipment volume would hit an all-time quarterly high in the fourth quarter, driven by stable supply of ultra-high nickel cathode materials and expanded sales of products for cylindrical batteries with a 46-pi (46 mm diameter) to new North American customers.
Annual shipment volume of nickel-cobalt-manganese (NCM) cathode materials this year is expected to increase by approximately 40% compared to last year. The company forecasted that it would record a shipment growth rate of over 30% for the second consecutive year, despite the slowing growth of the electric vehicle market.
Supply of cathode materials for 46-pi batteries is expected to expand significantly next year. L&F projected that the share of 46-pi products would rise to approximately 40% of total NCM shipments as supply volumes from existing and new projects increase. Consequently, it forecasted that total NCM shipment volume would continue a double-digit growth trend.
The company is also expanding supply contracts in the lithium iron phosphate (LFP) cathode material business. L&F signed medium- to long-term supply contracts with a total of four companies this year: three major domestic battery cell manufacturers and one overseas customer. The secured volume is approximately 100 GWh on an energy storage system (ESS) battery basis. The company projected that LFP cathode material shipment volume would reach approximately 50,000 tons in 2027 and over 60,000 tons in 2028.
The increasing demand to replace Chinese-made materials in the North American ESS market is also cited as an opportunity factor. L&F is currently conducting supply negotiations with additional customers and expects the LFP business to contribute substantially to revenue and profit starting next year.
Ryu Seung-heon, Chief Financial Officer (CFO) of L&F, stated, "Next year, the expansion of supply for existing and new 46-pi projects and the increase in LFP volumes for North American ESS will be fully realized." He added, "We expect the simultaneous growth of both NCM and LFP businesses to lead to revenue expansion and improved profitability."
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