[Report] '30 Tons Per Day Production'... Inside L&F's Smart Factory at Guji Plant 3 Defying China's Low-Cost Competition

Efficiency Enhanced Through Process Automation
Each Line Strictly Separated... Differentiation from China
Single-Crystal Ternary Production Without Washing Process

L&F Guji Plant 3 Exterior. L&F

A space lined endlessly on both sides with high-temperature firing kilns reaching up to 1,100 degrees Celsius. As soon as the door opens, a wave of heat engulfs your face, and hundreds of rollers rotate ceaselessly, transporting products without pause.

This is L&F's Guji Plant 3 in Dalseong-gun, Daegu, visited on May 26. It is a key production base for L&F, where a variety of cathode material samples, ranging from high-nickel to single-crystal mid-nickel, are pilot-produced. The plant has been designed as a super high-efficiency 'smart factory,' with each line capable of producing over 600 tons of cathode material per month.

Except for the raw material input and packaging processes, there are no human-operated steps in this facility. L&F is also working to fully automate even those two remaining processes. Equipment innovation is embedded in every stage to ensure production that is more precise, faster, and cleaner than what humans can achieve.

The firing furnace of L&F Guji Plant 3. L&F

L&F highlights its 'firing process,' which precisely tunes cathode material performance at high temperatures, as a key differentiator. On the first floor, 20 kg square containers filled with cathode material raw materials are stacked in three tiers and five rows, heading sequentially into the firing kiln. Both the containers used in this process and the special roller equipment that transports them were developed in-house.

After more than two years of dedicated development, the structure was reinforced to prevent collapse even when loaded with more product than competitors. In addition, sensors were attached to each of the more than 700 rollers, allowing real-time response in case of any abnormalities. As the rollers slowly rotated, the sensors attached to each one blinked, confirming normal operation.

The firing kiln inside L&F Guji Plant 3. L&F

Even before entering the firing kiln, the products undergo a thoroughly managed, fully automated process.

All processes start on the third floor, where precursors and other raw materials are loaded. In the center of the raw material input room, there were two 500 kg bags of precursor. Here, lithium and precursor raw materials, automatically classified and barcode-recognized in the automated warehouse, are fed into tanks. While products are currently loaded manually, the company is developing a system to automate the entire process within this year.

The raw materials introduced in this way are mixed, then fired, cooled, and sequentially crushed. When the crushed products are collected in storage tanks, they are thoroughly mixed to ensure quality uniformity.

Cooling equipment at L&F Guji 3 Plant. The calcined cathode active material is cooled here. L&F

Afterward, a sieving process further standardizes particle size, followed by removal of metallic foreign substances using an electromagnetic separator, and then packaging. All of these steps are automated. At Guji Plant 3, which produces single-crystal cathode materials, there is no washing process to remove residual lithium. Single-crystal materials typically contain little residual lithium, so the washing process can be omitted. This reduces investment costs and increases production speed.

L&F Guji 3 Plant's sieve equipment. L&F

Another competitive strength of L&F is its rigorous quality control. To prevent cross-contamination between lines, each process section is strictly separated. To view a single line, one must pass through two or three doors. Kim Dongsoo, head of manufacturing at L&F, explained, "This structure is a key point of differentiation from Chinese and other international companies."

Kim also said, "The same applies to Plants 1 and 2, but customers are always surprised by the cleanliness during site visits." Even considering that Plant 3 only produces test samples, the interior was so clean that not even a trace of powder was visible.

Kwon Hyukwon, head of process development research, stated, "The primary competitive edge is how much and how quickly we can produce. We have already secured this. Now, the differentiator is how precisely we control the process, and this is a level that China has not yet reached."

L&F Guji Plant 3 produces 30 tons per day per single production line. Production capacity, which was 30 tons per month in 2007, increased to 30 tons per day in less than ten years. Kwon expressed confidence, saying, "There is still no company capable of producing over 600 tons per line. We are considering ways to increase this output by an additional 30%."

Extreme efficiency, clean systems, and automated facilities. The reason L&F remains confident despite China's ultra-low-cost competition is its fully automated 'smart factory.' L&F plans to further enhance its competitiveness in various products, including premium LFP (lithium iron phosphate) and next-generation cathode materials, in the global market through its advanced process technology.