On the 10th, L&F, a comprehensive material specialist in secondary batteries, announced that it signed a business agreement with SK On for the supply of lithium iron phosphate (LFP) battery cathodes. Under the agreement, the two companies will discuss practical cooperation plans regarding the volume and timing of LFP cathode supply in the future. Based on this, they also plan to pursue a mid- to long-term supply contract.

Shin Young-gi, Head of Purchases at SK On (left), and Lee Byeong-hee, Chief Operating Officer of L&F, pose for a commemorative photo after signing a memorandum of understanding (MOU) for the supply of LFP battery cathode materials in the North American region on the 10th (Thursday) afternoon at the SK On Green Campus in Jongno-gu, Seoul. / Courtesy of SK On

L&F is preparing for the LFP cathode business faster than other domestic material companies. Currently, it is shipping products from the pilot line to customers and conducting final product testing. Additionally, on the 10th, it held a board meeting to establish a new corporation for the full-scale new LFP cathode business and acquire equity in the newly established corporation.

The reason for the swift advancement of the LFP cathode business, despite the slowdown in electric vehicle market demand and the unstable international situation due to the U.S.-China conflict, is that the demand for LFP cathodes for mid- to low-priced electric vehicles and energy storage systems (ESS) is surging.

A representative from L&F noted, "With the passage of the U.S. tax and expenditure bill (One Big Beautiful Bill, OBBB), some uncertainties have been resolved, and the rapid increase in ESS demand due to the surge in AI data centers and the expansion of green energy facilities such as wind power is accelerating the actions of battery cell companies." He added, "This business agreement can be seen as a proactive response to the surging demand for LFP cathodes, as battery companies aim to secure our LFP cathode production line in advance."

A representative from SK On explained, "We have joined forces with L&F, an excellent domestic material company, to proactively respond to the demand for LFP batteries in our core market of the United States," adding, "This is particularly a strategy for actively entering the rapidly growing energy storage system (ESS) market."

Lee Byung-hee, Chief Operating Officer (COO) of L&F, stated, "Starting with our recent business agreement with key domestic battery companies, we are closely examining future demand," and added, "We will confirm specific quantities with our customers and pursue mid- to long-term supply contracts."

※ This article has been translated by AI. Share your feedback here.