L&F Signs Supply Contract Worth Over 1 Trillion Won with LG Energy Solution

One of the key materials of cathode active materials for secondary batteries (electric vehicle batteries)

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution has signed a cathode material supply contract worth 1.4 trillion KRW with 'L&F', a producer of cathode materials for secondary batteries (electric vehicle batteries).

On the 16th, L&F announced that it had signed a cathode material supply contract worth 1.4547 trillion KRW with LG Energy Solution and its subsidiaries. From next year through 2022, L&F will supply cathode materials, which are key components determining the capacity and output of batteries, to LG Energy Solution factories both domestically and internationally over the next two years.

According to industry sources, L&F plans to produce and supply LG Energy Solution with NCMA (Nickel-Cobalt-Manganese-Aluminum) cathode materials that have a high nickel content. NCMA batteries, with nickel content reaching 90% and reduced expensive cobalt content below 5%, add cost-effective aluminum materials to enhance price competitiveness and improve output performance.

As the nickel content in cathode materials increases, the battery's energy density improves, extending the driving range of electric vehicles. However, this also raises the risk of explosion due to heat, requiring advanced technology to increase nickel content safely.

LG Energy Solution succeeded in developing NCMA batteries by adding aluminum materials to the existing NCM (Nickel-Cobalt-Manganese) cathode materials after years of research.

LG Energy Solution is expected to receive NCMA cathode materials from L&F and supply NCMA batteries to newly secured orders for Tesla electric vehicle Model Y and GM electric vehicles around the second half of next year.

Meanwhile, L&F is a company manufacturing cathode materials for secondary batteries, led by CEO Heo Je-hong, the great-grandson of the late Heo Man-jung, co-founder of LG Group.