Battery materials specialist company L&F announced that its sales in the second quarter increased by 43% compared to the previous quarter, reaching 521 billion KRW, driven by higher shipment volumes. Operating profit was -121.2 billion KRW, which represents a 14% improvement from the previous quarter, but the improvement in profit and loss was limited compared to the growth in sales.
The company explained, "In the second quarter, raw material prices reached their lowest point in June, leading to additional losses. The decline in the KRW-USD exchange rate also posed a significant burden on profitability recovery."
L&F stated that its shipment volume in the second quarter grew by 55% compared to the previous quarter, marking a clear upward trend for three consecutive quarters.
The company said, "Recovery of customer share due to the exclusive supply of the new Ni-95% product and the start of mass shipments of new products drove shipment volume growth." It also stated, "The continued expansion of high-nickel product shipments and the recovery of volumes for Europe-bound shipments will sustain the increasing trend in cathode material shipments in the second half of the year." The company added, "We will continue to maintain our annual shipment target for 2025 at a level 30-40% higher than the previous year."
L&F presented the third quarter as a turning point for profit and loss improvement. If lithium prices do not fall further, the burden of inventory valuation losses will be greatly alleviated. Combined with the recovery of utilization rates due to increased shipment volumes in the third quarter, profitability is expected to improve at a faster pace. The company also explained that recent signs of a rebound in lithium carbonate prices are expected to be a positive factor for performance improvement.
Regarding the new business of lithium iron phosphate (LFP) cathode materials, L&F explained that it is being stably promoted based on business agreements with global battery cell makers such as SK On. With the recent surge in demand for energy storage systems (ESS), demand for LFP cathode materials is significantly exceeding initial expectations, and the company expects additional opportunities to expand orders.
L&F CFO Ryu Seunghun stated, "We will continue to secure growth momentum that covers the entire electric vehicle and ESS market by expanding our product portfolio based on differentiated technological capabilities." He added, "As LFP projects with domestic and global customers are progressing smoothly, we will do our best to deliver meaningful results as quickly as possible."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
