L&F, a company specializing in secondary battery materials, announced on September 4 that it has recently completed the establishment procedures for its subsidiary, L&F Plus, which is dedicated to the production and sales of lithium iron phosphate (LFP) cathode materials, and began full-scale construction in August.
L&F Plus is being built in the second phase of the Naeri National Industrial Complex in Guji-myeon, Dalseong-gun, Daegu Metropolitan City, on a site of approximately 100,000 square meters. The total investment amounts to 338.2 billion won, and upon completion, it will have an annual production capacity of up to 60,000 tons of LFP cathode materials. L&F aims to complete construction in the first half of 2026 and begin mass production in the second half, with plans to consider further expansion in response to growing market demand.
L&F will own the newly established subsidiary as a wholly owned company and plans to accelerate its entry into the mid- to low-priced electric vehicle (EV) and energy storage system (ESS) markets based on its LFP cathode material business.
Recently, global demand for LFP cathode materials, which offer both cost competitiveness and safety, has surged in the electric vehicle market. However, Chinese companies currently hold a high market share in this sector, making the establishment of a non-China supply chain a key challenge for the industry in the ESS and mid- to low-priced EV markets.
An L&F official stated, "We have secured sufficient competitiveness to proactively respond to LFP cathode material demand based on our differentiated technology and quality stability," adding, "We will make the LFP business a profitable growth engine through the early start of mass production and rapid stabilization."
Meanwhile, in July, L&F signed a memorandum of understanding (MOU) with SK On to supply cathode materials for LFP batteries for the North American market. In May, the company also signed a business agreement with a major domestic battery manufacturer.
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