L&F plans to overcome the crisis this year through new businesses such as high-nickel and mid-to-low-priced lithium iron phosphate (LFP) cathode materials. Regarding LFP, the company noted on the 5th that it is also considering producing the products directly in the United States.
L&F reported an operating loss of 510.2 billion won last year, a larger deficit compared to a loss of 222.3 billion won the previous year. During the same period, sales fell by 58.9 percent to 1.9075 trillion won. The decline in performance is attributed to weakened demand in the electric vehicle and battery industries, as well as fluctuations in metal prices leading to a decrease in selling prices.
This year, L&F plans to sequentially launch new high-nickel products and cathode materials for LFP to recover its performance. Following the world's first mass production of 95 percent nickel cathode materials for 46 mm diameter batteries last year, the company is preparing to supply new products with 95 percent nickel content for 2170 cylindrical batteries, which are expected to be shipped starting at the end of the first quarter of this year.
The company is also pursuing plans to supply LFP cathode materials to domestic and overseas customers. It plans to initiate the first mass production of LFP outside of countries under the U.S. Foreign Entities Oversight Coalition (FEOC), targeting to commence full-scale production in 2026. By 2027, the sales proportion is expected to be around 75 percent for high-nickel cathode materials and about 25 percent for LFP cathode materials.
L&F Chief Financial Officer (CFO) Ryu Seung-hun said during a conference call for performance announcement on the 5th, "LFP is being prepared on a two-track basis," adding, "We are prioritizing domestic production and also considering direct commercialization in the United States."
He noted, "To flexibly approach the regulations coming from the Donald Trump administration in the United States, it would be reasonable to go on a two-track basis," further stating, "Significant progress has been made, and I believe we can explain specific business plans by the second quarter."
Regarding the imposition of tariffs, he stated, "We cannot predict the exact magnitude of the impact yet," but added, "Even if tariffs are imposed, it is unlikely to be significantly unfavorable." He continued, "We are working to enhance production efficiency, and since our major customers are major companies in the United States, the impact related to the Inflation Reduction Act (IRA) is expected to be relatively minimal."