[Exclusive] Leading Anode Material Company L&F Partners with Tesla Founder

L&F Signs Strategic Agreement with Redwood Materials

Collaboration to Advance Cathode Materials and Battery Recycling Businesses

Expected to Secure Mid- to Long-Term Price Competitiveness through Use of Recycled Raw Materials

Redwood Plans to Secure 100GWh Cathode Material Capacity in the U.S. by 2025

Expansion of Battery Recycling Business Anticipated to Enhance ESG Response and Create New Value

[Asia Economy Reporter So-yeon Park] L&F, a leading domestic cathode material company, has formed a strategic partnership with Redwood Materials in the United States. Redwood Materials was founded in 2017 by J.B. Straubel, co-founder and former Chief Technology Officer (CTO) of Tesla, to focus on battery recycling business.

On the 27th, L&F announced that it signed a strategic technology and business agreement with Redwood Materials, headquartered in Nevada, USA, to establish a virtuous supply chain for batteries (precursors, cathode materials, and battery recycling).

Since its inception, Redwood has attracted investments from funds supported by notable figures such as Amazon, Bill Gates, and Microsoft founders, gaining significant attention. In July, it drew global interest by securing $700 million (approximately 840 billion KRW) in investment.

Redwood’s partnership with L&F for a battery circular economy marks its second strategic choice following Ford Motor Company in the U.S. Recently, Redwood formed a strategic partnership with Ford, the largest U.S. automaker, for battery recycling and received an investment of $50 million (approximately 60 billion KRW). Redwood appears to have selected L&F as a strategic partner due to L&F’s possession of production technologies not only for cathode materials but also for precursors, aiming to enter the electric vehicle battery materials sector.

Through this collaboration with Redwood, L&F has presented a blueprint for expanding into overseas markets including North America and Europe, in addition to domestic production. Redwood plans to operate a 100GWh cathode material business capable of supplying batteries for one million electric vehicles by 2025. For future business expansion, Redwood has chosen L&F, the only company currently producing NCMA (Nickel-Cobalt-Manganese-Aluminum) products with 90% nickel content in the market. Through this partnership, both companies are expected to expand their supply chain to Tesla and establish a sustainable battery supply chain from recycling to cathode materials.

Choi Soo-an, CEO of L&F, stated, "We have long been considering ways to secure sustainable and competitive raw materials and expand overseas. Through business cooperation with Redwood Materials, we can secure raw materials in a way that enhances social value, such as using recycled raw materials, rather than directly investing in mines or salt lakes. Additionally, we are pleased to be able to concretize our overseas expansion plans." He added that by using recycled raw materials, they expect to achieve superior price competitiveness compared to traditional raw material procurement methods, which is anticipated to be a key factor in securing double-digit margins in the cathode material industry where raw material costs are high.

Furthermore, L&F expects that establishing a cooperative system in the recycling field will enable the company to respond to the growing social focus on ESG (Environmental, Social, and Governance) and simultaneously increase corporate value. The collaboration with a company possessing the world’s best recycling technology will instantly address the raw material procurement weaknesses that have been considered a disadvantage compared to competitors. If L&F utilizes 100% recycled raw materials after 2025, it is expected to mark a new milestone as an eco-friendly company.