Sales of KRW 364.8 Billion... Down 42.6%
Surging Demand for New NCMA95 Product
Global secondary battery materials specialist L&F announced on April 30 that, on a consolidated basis, it recorded sales of KRW 364.8 billion and an operating loss of KRW 140.3 billion in the first quarter of this year.
The company stated, "After hitting a low point in shipment volume in the third quarter of last year, shipments have increased for two consecutive quarters, resulting in a 29% improvement in operating profit compared to the previous quarter." L&F also explained, "The spread between cost and selling price, which was a major factor behind the losses, is gradually narrowing, and as the impact of raw material (lithium carbonate) inventory valuation diminishes, profitability continues to improve."
Although one-off losses, such as inventory valuation losses on development products, were added to the first quarter's inventory valuation losses, resulting in performance below market consensus, the company explained that unless there is a further decline in raw material prices, no larger inventory valuation losses are expected to occur.
On this day, L&F announced that, due to a surge in demand for its new NCMA95 product, it is raising its annual shipment target for this year by 40% compared to the previous year. This figure significantly exceeds the previously stated target of a 30% year-on-year increase in shipments announced at the beginning of the year. L&F stated, "Despite the challenging period caused by a slowdown in electric vehicle demand, we have raised our shipment target thanks to strong sales of new electric vehicle (EV) models by our North American customers. In particular, with the full-scale supply of new products beginning in the second quarter, we expect shipment growth of 70% compared to the previous quarter, and anticipate continued shipment growth in the second half of the year as well."
Ryu Seungheon, Chief Financial Officer (CFO), said, "Despite the slowdown in EV demand and policy uncertainties, we are the only company in the industry to have continuously secured mid- to long-term supply contracts recently, resulting in the largest order backlog in the sector. Based on our diverse product portfolio, including high-nickel and lithium iron phosphate (LFP) products, we will provide value not only to existing customers but also to new clients, establishing a stable foundation for growth this year. From 2026 onward, we will continue to deliver even more visible growth."
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