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L&F inks $6.7 billion cathode materials deal

Published: 11 Apr. 2024, 13:48

SARAH CHEA
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Cathode materials producer L&F has clinched a 9.2 trillion won ($6.7 billion) battery materials deal with a European client, the Korean company said in a regulatory filing on Thursday.

The name of the buyer has not been disclosed.

Under the six-year deal, L&F will supply 176,000 tons of cathode materials, which is enough for around 2 million EVs. Cathodes are one of the four main ingredients in EV batteries, which make up 40 percent of the total battery cost.

The supply will start from Jan. 2025 to Dec. 2030. It's the first time L&F has secured a European customer.

Daegu-based L&F became the first company globally to begin mass-producing high-nickel cathodes in January 2021. Its clients include Tesla.

The company signed a $9.95 billion deal with SK On in March to supply 300,000 tons of high-nickel cathode materials.

"L&F will lead the world's cathode market based on our technological prowess and business competitiveness by expanding to various global clients," said L&F CEO Choi Su-an.

In June, the company said it will invest 1 trillion won jointly with LS to build a precursor materials plant in Gunsan, North Jeolla. Precursors are raw materials used to make cathodes and are produced by combining elements such as nickel, cobalt and manganese. They account for 70 percent of the cost of cathodes.

L&F is also running a 1 trillion won cathode plant in Daegu.

The firm's shares are trading at 167,900 won as of 2 p.m. Thursday, down 1.2 percent from the previous trading day.

BY SARAH CHEA [[email protected]]