L&F Expands Next-Generation Cathode Material 'NCMA' by 88 Billion KRW to Proactively Respond to Growing Demand

[Asia Economy Reporter Hyunseok Yoo] L&F announced on the 14th that it will make a new facility investment worth 88 billion KRW to proactively respond to the increasing demand for next-generation cathode materials.

This expansion decision comes just six months after a large-scale expansion investment of 210 billion KRW made in November last year. According to the company, this indicates a rapid surge in demand for the next-generation secondary battery cathode material, ‘NCMA’.

L&F began investing in the Daegu National Industrial Complex in 2018 and carried out the second phase of expansion in 2019 and the third phase in 2020. Including this investment, the total amount invested so far reaches approximately 450 billion KRW.

Along with the expansion, the company is also promoting the construction of a new logistics warehouse capable of handling shipments of 120,000 to 150,000 tons. The new logistics warehouse is scheduled to be completed by mid-next year.

In December last year, L&F signed a supply contract worth 1.4 trillion KRW with LG Energy Solution for the next-generation cathode material ‘NCMA’. In April this year, it also signed a supply contract worth 1.2 trillion KRW with SK Innovation, achieving consecutive large-scale contracts worth trillions of KRW.

An L&F official said, “The contract with LG Energy Solution amounts to 400% of last year’s sales, which externally proves L&F’s market-leading technology,” and added, “The contract with SK Innovation involves supplying products to major local European automakers, indicating that we possess the technological level to enter key overseas markets.”

He continued, “Since global electric vehicle sales are expected to increase due to the adoption of eco-friendly policies worldwide, continuous expansion will be necessary in the future,” and added, “To proactively respond to the increase in future order volumes and to establish a more efficient logistics system, we have decided to build a smart logistics factory.”