Signing of MOU for LFP Supply for EVs and ESS
Diversifying Supply Channels and Reducing Dependence on China
Plans to Supply Up to 50,000 Tons of LFP
L&F is making a full-scale entry into the lithium iron phosphate (LFP) battery business, targeting the global mid- to low-priced electric vehicle and energy storage system (ESS) markets. The company will become the first non-Chinese company in the world to mass-produce and supply LFP batteries, positioning itself as a key player in the diversification of the global battery supply chain.
On May 22, L&F announced that it had signed a memorandum of understanding with a major domestic battery manufacturer for the supply of lithium iron phosphate (LFP). Through this agreement, L&F plans to supply batteries for global mid- to low-priced electric vehicles and energy storage systems (ESS). It will become the first company outside of China to mass-produce and deliver LFP batteries on a large scale.
Amid recent global uncertainties such as tariffs and tensions between the United States and China, automakers are increasingly demanding mid- to low-priced products and seeking to diversify their suppliers and reduce dependence on China. As a result, collaboration with battery manufacturers has become more active.
Based on this agreement, L&F will officially and fully enter the LFP business. Since the beginning of this year, the company has consistently mentioned its plans to enter the LFP market, a mid- to low-priced segment, in response to slowing electric vehicle demand. This agreement marks the first concrete outcome of those efforts.
The manager in charge of L&F's LFP project stated, "Although there are still many variables depending on cooperation with our customers, demand for LFP continues to increase significantly, and other customers have also expressed interest. We plan to start the LFP business with a capacity of up to 50,000 tons and gradually expand according to demand."
L&F's LFP products feature significantly improved energy density, offering energy density similar to that of mid-nickel ternary products but at a much lower price. In addition, leveraging L&F's accumulated mass production capabilities, the company has secured high productivity and price competitiveness, attracting strong interest from various automakers and battery manufacturers.
An L&F representative said, "Based on our solid position in high-nickel products such as the NCMA95, we will also meet the diverse needs of our customers by offering LFP products for the mid- to low-priced segment."
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