InterviewL&F confident in overcoming China's dominance in battery industry

L&F President and Chief Product Officer Chang Sung-kyun / Courtesy of L&F

As the global battery industry comes under intense U.S. pressure to reduce reliance on China, L&F is seizing the moment to position itself as a key supplier of cathode materials independent of Chinese companies designated as foreign entities of concern (FEOC), which the U.S. government identifies as national security risks.

Through continued efforts to develop homegrown cathode materials — ranging from high-nickel NCMA (nickel, cobalt, manganese and aluminum) to lithium iron phosphate (LFP) — the Daegu-based company is preparing to meet the needs of clients seeking FEOC-free supply chains to access the U.S. market.

"The market and global customers are asking for three things with LFP — technological independence from FEOC, performance equal to or better than Chinese products and long-term supply chain stability," L&F President and Chief Product Officer Chang Sung-kyun told The Korea Times in a recent interview.

L&F has maintained the lead in high-nickel NCMA for premium electric vehicles (EVs), but it has actively diversified its portfolios, expanding into the lower-cost LFP segment, which has long been dominated by Chinese suppliers.

LFP batteries offer lower costs and higher safety, while NCMA batteries provide higher energy density and better performance but at a higher cost. Korean battery firms have primarily focused on NCMA, but the global market is seeing a growing demand for LFP.

L&F became the first Korean firm to pilot mass production of LFP in 2023. With full-scale production set to begin by the end of this year, the company announced last month that it signed a memorandum of understanding with a major Korean battery maker to supply LFP for use in budget EVs and energy storage systems.

"Our customers say our quality is on par with, or even better than, Chinese companies," Chang said. "As demand for non-FEOC LFP grows, we are in talks with domestic and international cell makers and original equipment manufacturers to supply our products."

He added that L&F is working with Mitra Chem, a North American battery materials firm, to start mass production of LFP in the U.S. by late 2027.

"We have been working with partners in the U.S., Europe and Asia to secure a stable long-term supply of raw materials," he said.

A large-scale mockup of L&F's cathode material is on display at the company's factory in Daegu. Courtesy of L&F

China-free precursors

When it comes to precursor sourcing, L&F has also built a supply chain that excludes China. Precursors are processed materials in the final stage before being combined with lithium to form cathode active materials.

"With our subsidiary JH Chemical Industry (JHC), we have been building proprietary know-how in precursor development since 2011," Chang said.

He also highlighted LS-L&F Battery Solution (LLBS), a joint venture launched in 2023 by LS Group and L&F to produce precursors.

The partnership stands in contrast to other Korean cathode material companies that continue to rely on Chinese precursor sources.

"LLBS is a Korean precursor company fully independent of Chinese technology and capital," Chang said. "Through cooperation between LLBS, L&F and JHC, we have built a non-FEOC supply chain that spans mining, smelting, refining, precursor and cathode material production and recycling."

A sintering furnace inside L&F's factory in Daegu / Courtesy of L&F

Battery industry's future

L&F expects its high-quality products to remain competitive against China's low-cost offerings, even if trade tensions between the U.S. and China ease.

"The U.S.-China trade war will only end when China begins to follow what the U.S. calls global market standards," Chang said. "If we are competing on equal terms, we will continue to have the upper hand."

As a chemical engineer who spent 18 years in battery research and development at LG Chem before joining L&F in 2018, he expressed cautious optimism about his company's future.

"We never take past success for granted," he said. "We aim to be the first to develop what the market lacks and the fastest to deliver what the market demands."

He predicted that over the next five years, the global cathode materials market will focus on three key areas: raw material supply chains built on independent technology, practical battery recycling and a shift toward digitalization and artificial intelligence.

"We have been preparing for all three areas for years, and now we are ready to deliver," he said. "With our experience and foresight, I believe we can achieve sustainable growth."