Investment Scale, Largest Ever by a Single Regional Manufacturing Company... Securing a Total 80,000t Mass Production System in Daegu Region
[Asia Economy Yeongnam Reporting Headquarters Reporter Dongwook Park] On the afternoon of the 17th, Daegu City held an investment agreement (MOU) for the construction of the 4th factory producing cathode materials for secondary batteries within the Daegu National Industrial Complex, attended by Mayor Kwon Young-jin and Choi Su-an, CEO of L&F Co., Ltd., a leading local energy company.
L&F Co., Ltd. will invest 250 billion KRW by 2023 (Phase 1: 210 billion KRW in October 2022, Phase 2: 40 billion KRW by the end of 2023) to build its fourth cathode material manufacturing plant on a 26,372㎡ (7,977 pyeong) site within the Daegu National Industrial Complex.
To actively respond to market demand for Hi-nickel products among medium and large secondary battery cathode materials, Daegu City introduced plans to expand production capacity and create 500 new jobs, with construction starting in December and full operation beginning in the second half of 2022.
Following the completion of the 3rd factory in the Daegu National Industrial Complex in August last year, L&F is reinvesting after just one year and three months. Once the expansion is completed by early second half of 2022, the total annual production capacity will reach approximately 80,000 tons, combining 20,000 tons from the 1st factory (Seongseo) and 2nd factory (Chilgok, Gyeongbuk) with 60,000 tons from the 3rd and 4th factories (Daegu National Industrial Complex).
This large-scale investment by L&F is the highest investment amount ever made by a local manufacturing company alone. It is expected to create around 500 new jobs and have a ripple effect by opening employment opportunities for excellent talents nurtured through the region’s pride, the HuStar project.
Moreover, with the second phase of land sales in the Daegu National Industrial Complex scheduled for the second half of next year, Daegu City expects this to serve as a positive momentum for attracting companies and land sales within the national industrial complex.
L&F is recognized as an industry leader through continuous technological development, including the world’s first mass production of NI-90% NCMA, by rapidly enhancing production capacity in response to the recent expansion of the global electric vehicle market and increased demand for energy storage systems. Lithium secondary batteries, mainly used in electric vehicle batteries and energy storage systems, consist of cathode materials, anode materials, separators, and electrolytes, with cathode materials accounting for the largest share of 35-40% of the secondary battery cost as a core material.
Choi Su-an, CEO of L&F, said, "Based on solid technology and sales channels, we decided on another large-scale investment following the completion of the 3rd factory in the Daegu National Industrial Complex in August 2019. We will strive to become a company that contributes to the national and regional economy through continuous technological development and innovation."
Mayor Kwon Young-jin of Daegu said, "With L&F’s large-scale investment, we expect to gain more momentum in creating an ecosystem for the electric vehicle industry, which has emerged as a definite future growth engine centered on the Daegu National Industrial Complex. We will do our best to attract related companies and foster the energy and future automobile industries to generate synergy effects with the local industry facing difficulties."
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