L&F's 3.52 Tril.?Won Deal Marks Milestone in High-Nickel Cathode Material Supply

L&F, a prominent battery materials company, announced on March 11 that it has secured a mid-to-long-term supply contract for high-nickel cathode materials valued at 3.5184 trillion won.

Last year, L&F faced a challenging period with a 58.9% decrease in annual sales, amounting to 1.9075 trillion won, and an operating loss of 510.2 billion won. The decline in demand for electric vehicles, coupled with falling lithium and nickel prices, led to reduced product shipments and lower product prices, significantly impacting the company's financial performance. However, the new contract, which remains confidential regarding the contracting party and duration, signals a potential turnaround for L&F.

This contract is the first large-scale supply agreement L&F has secured this year, sparking interest in whether it will lead to a substantial improvement in the company's performance. The order highlights L&F's technological competitiveness, particularly in the realm of high-nickel cathode materials. These materials, with a nickel content of 80% or more, are crucial for high-performance electric vehicles due to their ability to enhance energy density, battery life, and safety.

Notably, L&F has achieved a significant technological milestone by becoming the first in the world to commercialize a cathode material with a 95% nickel content for the 46-pi cylindrical battery. This next-generation battery, featuring a composite application of polycrystalline and monocrystalline technologies, offers improved energy density, battery life, and safety compared to existing high-nickel materials. Such advancements underscore L&F's strategic focus on innovation and its ability to maintain a competitive edge in the rapidly evolving battery technology landscape.

Source: Business Korea (Website)

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