Long-term Supply Contract for 6 Years Starting 2025
"Expanding Global Clientele... Leading the Anode Material Market"
L&F has signed a cathode material supply contract worth 9 trillion KRW with a European client.
On the 11th, L&F announced that it had signed a mid- to long-term supply contract for 176,000 tons of cathode materials with a European client. The supply period is a total of 6 years, from January 2025 to the end of December 2030. The contract amount reflects the recent average price and totals 9.2 trillion KRW. The company stated that the name of the contracting company will remain confidential at the client's request.
L&F explained that it is the first domestic cathode material company to sign a contract with a client in the European market. Europe is known to have high entry barriers as it regulates the amount of carbon dioxide generated during secondary battery material production and sets the usage ratio of recycled raw materials.
L&F plans to expand its presence in Europe by exporting cathode materials that meet the environmental, social, and governance (ESG) requirements under the EU Battery Regulation. Additionally, it aims to secure raw materials through the recycling business of its subsidiary JH Chemical Industry and, in the mid to long term, enhance cost competitiveness by procuring key raw materials through vertical integration.
After signing a supply contract with a U.S. electric vehicle (EV) company in February last year, L&F also signed a supply contract with SK On for 300,000 tons. Recently, it also signed an MOU related to LFP with the U.S. company ONE.
Choi Su-an, CEO of L&F, said, "We will expand cooperative relationships with various global clients and lead the cathode material market based on outstanding technology and business competitiveness. We will continue to create differentiated corporate value unique to L&F."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
