Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
INTERVIEW L&F prepares to build advanced battery materials plants abroad
L&F CEO Choi Su-an / Courtesy of L&F
By Park Jae-hyuk
Cathode materials producer open to sourcing graphite from China
L&F, a Daegu-headquartered cathode materials producer, has not quit its efforts to build overseas factories, despite lingering skepticism about the battery industry amid the deceleration in global demand for electric vehicles, the company’s chief executive said.
Securities analysts have anticipated further delays in L&F’s overseas expansion, citing its 222.3 billion won ($165 million) operating loss in 2023, which was its first deficit in four years. In 2022, the government also banned L&F from establishing a U.S. joint venture, due to concerns over any possible leakage of Korea’s core technologies.
L&F CEO Choi Su-an acknowledged the ongoing difficulties in the battery industry, attributing the current situation to various factors, such as the economic slowdown, government subsidies and falling mineral prices.
However, he emphasized that the company has continuously and cautiously considered building manufacturing facilities in North America or Europe, while diversifying its business portfolio and developing new technologies.
“We are prepared to launch our new business swiftly and stably, as soon as we decide to enter a certain country,” he told The Korea Times in a recent interview. “We are also analyzing the potential impacts of the U.S. presidential election on our business, while devising strategies to counter various scenarios.”
Choi also said that L&F is set to supply a broader range of battery materials to its global clients, who want products that satisfy the requirements of the U.S. Inflation Reduction Act (IRA), a law that is considered to be intended to curb the growth of China’s battery industry.
“Our ambitious business scheme of establishing a joint venture in Korea with Mitsubishi Chemical for the production of anode materials is still valid,” he said. “The joint venture is expected to be established during the first half of this year at the earliest. We plan to source natural graphite from Africa and countries that are not designated as foreign entities of concern (FEOC).”
The U.S. government’s guidelines stipulate that a company would not be eligible for tax credits from 2025 if an FEOC holds 25 percent or more of its board seats, voting rights or equity interest. Some rivals of L&F are therefore considering adjusting their stakes in joint ventures established with Chinese partners, once Washington provides further details about FEOC under the IRA.
Last October, L&F also set up a joint venture with LS Group to begin mass production of precursors on the Saemangeum Industrial Complex in North Jeolla Province during the first half of 2026.
“LS-L&F Battery Solution is a joint venture between Korean companies, so many clients are interested in our products, so as to cope with the IRA,” Choi said.
However, the CEO did not rule out the possibility of sourcing minerals from China.
“We do not have any plan to source raw ingredients from China in the short run,” he said. “From a medium- to long-term perspective, however, we may consider sourcing ingredients from China to expand our global sales outside of North America.”
L&F's cathode materials are on display at the company's exhibition booth during the InterBattery 2024 at COEX in Seoul, March 6. Yonhap
Moving to KOSPI from Kosdaq
For its expansion here and overseas, L&F also moved to the benchmark KOSPI market from the secondary bourse Kosdaq in January.
Choi explained that the decision was intended to attract larger investments from institutional investors in the U.S. and Europe, as well as from the National Pension Service, which is banned from direct investments in Kosdaq-listed stocks.
“After our company’s listing on the KOSPI, many institutions in the U.S. and Europe have been asking for meetings with us,” he said. “We will try to stabilize our stock price and enhance our corporate value by attracting investments from larger institutions.”
L&F Innovation Center in Daegu / Courtesy of L&F
Continuous innovation
The CEO vowed to maintain L&F’s technological competitiveness and form various alliances to diversify its business.
“Through the development of eco-friendly materials and innovation in the production process, we will fulfill our duty as the industry leader, from the perspective of sustainability,” he said. “L&F-Chemo Solution, our joint venture with Chemowave, a subsidiary of Yonsei Technology Holdings, is also doing research to improve the performance of cathode materials.”
Choi emphasized that L&F has surpassed its competitors, as the company is equipped with independent technologies to design facilities for mass production, in addition to technologies to design cathode materials.
Who is Choi Su-an?
Born in 1970, Choi joined L&F in 2009 as chief technology officer and became the CEO in 2016.
He started his career at LG Cable in 1999 as a senior research scientist, after earning a Ph.D. and a master’s degree in chemical engineering from the Korea Advanced Institute of Science and Technology (KAIST). He earned his bachelor’s from Yonsei University.
In 2005, he moved to LG Chem Battery Tech Center and worked until 2008 as a senior research scientist. He also worked at Kimberly-Clark Innovation Center between 2008 and 2009.
L&F at a glance
| Founded in July 27, 2000 |
|---|
| Mainly produces cathode active materials for secondary batteries |
| Possesses 18.1 billion won in capital as of 2023 |
| Generated 4.6 trillion won revenue in 2023 |
| Employs 1,788 workers as of 2023 |