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L&F leads LFP cathode production, targets non-Chinese ESS supply chain
L&F Plus lithium iron phosphate manufacturing plant in Daegu in this undated photo / Courtesy of L&F
By Ko Dong-hwan
Cathode maker ramps up LFP output amid surging ESS demand
L&F is accelerating its lead in the global battery cathode market by launching Korea’s first mass production of lithium iron phosphate (LFP) materials, positioning itself as a key non-Chinese supplier for the fast-growing energy storage system (ESS) sector.
The company will begin producing 30,000 tons annually at its L&F Plus plant by the end of September. The plant’s capacity is set to double by the end of June next year to meet surging demand for ESS in North America.
“The ongoing spike in LFP demand is the biggest strategic shift we’re seeing from global customers,” L&F President and Chief Financial Officer Yu Sung-hun said. “Beyond cost, supply chain stability is now the new competitive edge accelerating LFP growth.”
While high-nickel ternary (NCM) cathodes remain dominant in premium electric vehicles (EVs), LFP has become the standard for ESS and mass-market EVs due to its thermal stability, long lifespan and cost efficiency. The ESS boom, driven by artificial intelligence data centers, renewable energy integration and energy security, is structurally pushing the market toward LFP.
L&F’s move comes as countries strengthen their domestic battery supply chains. While the United States’ Inflation Reduction Act and the European Critical Raw Materials Act are reshaping sourcing rules, LFP supply chain diversification has lagged behind that of NCM. L&F is now the first Korean maker to bridge that gap.
Lithium iron phosphate particles magnified 5,000 times / Courtesy of L&F
In May, L&F Plus secured 220 billion won ($155 million) in long-term, low-interest loans from the state-run National Growth Fund, including 170 billion won from the Advanced Strategic Industry Fund, which recognized the company’s strategic role in building a non-Chinese LFP supply chain. The company also signed a 1.6 trillion won mid- to long-term LFP supply deal with Samsung SDI, underscoring its ability to execute.
Technologically, L&F is developing high-density third-generation LFP with a tap density of 2.50 grams per cubic centimeter or higher to overcome current energy density limitations and target higher-value segments. It is also advancing in-house production of iron phosphate precursors, next-generation precursor-free processes using ferric oxide and recycling technologies through partnerships with LS Group and C&S Chemical.
L&F’s core business is also rebounding strongly. First-quarter sales reached 739.6 billion won, with an operating profit of 117.3 billion won, marking three consecutive quarters of profitability. High-nickel shipments have reached record highs for three straight quarters since the third quarter of last year, rising 124 percent year-on-year in the first quarter on strong demand from North American original equipment manufacturers.
With its two-track strategy spanning high-nickel NCM and LFP, L&F is expanding its footprint across the EV and ESS markets. As the battery industry shifts from China-centric to more diversified supply chains, L&F’s early move into LFP mass production marks a pivotal moment in its quest to become a core partner for non-Chinese ESS supply chains.