L&F targets 4.5-fold output growth by 2030 with high-nickel, LFP two-track strategy

L&F, long focused on high-nickel cathode materials, is moving to make lithium iron phosphate a second core business. The company aims to broaden its product lineup in response to shifting electric vehicle demand and a growing energy storage system market, targeting total cathode shipments 4.5 times last year's level by 2030.

L&F held its "2026 Investor Day" for domestic and international institutional investors and analysts Thursday at the Guji 3 factory in Dalseong-gun, Daegu, unveiling the mid-to-long-term strategy.

The centerpiece is a two-track approach: growing high-nickel nickel-cobalt-manganese cathode materials and LFP simultaneously. L&F plans to diversify away from its current high-nickel-heavy structure, targeting a product mix of 63 percent NCM and 37 percent LFP in total shipments by 2030.

Through this strategy, L&F has set a goal of expanding total 2030 shipments to 4.5 times 2025 levels. The company also plans to reduce its dependence on specific products and customers while addressing new battery demand beyond electric vehicles — including ESS and robotics.

Within its existing NCM lineup, L&F is positioning 46-series large cylindrical battery cathode materials as a growth driver. Having begun supplying cathode materials for 46-series cells late last year, the company aims to grow NCM shipments at an average annual rate of 23 percent through 2030, riding broader adoption by global automakers and rising demand for robot batteries.

On the LFP side, L&F will target the ESS market first. Its strategy is to secure non-Chinese markets, including North America, by leading with domestic production in an LFP supply chain currently dominated by Chinese manufacturers, before eventually expanding into entry-level electric vehicles.

The LFP business will be handled by wholly owned subsidiary L&F Plus. L&F is developing third-generation high-density LFP with a packing density of 2.50 g/cc or above, focusing on addressing the relatively low energy density that has long been a weakness of conventional LFP.

Mass production is also ramping up. L&F shipped trial LFP cathode material from its Daegu factory in late July and plans to begin commercial production at an annual capacity of 30,000 tons by the end of this month. It will then expand capacity to 60,000 tons per year by the first half of 2027.

The company is also reviewing a further expansion to more than 120,000 tons annually, depending on additional orders. On the raw materials side, L&F is diversifying its precursor suppliers while also developing "precursor-free" LFP technology that eliminates the precursor process altogether.

The LFP push is already translating into orders. L&F signed an LFP cathode supply agreement with SK On on Thursday valued at around 160 billion won ($117 million), covering ESS cathode material supply through the end of 2028, with an option to extend the contract by up to three additional years depending on market conditions and demand.

The LFP cathode materials supplied to SK On are expected to go into ESS-dedicated LFP battery production lines in Seosan, South Chungcheong Province, and in the state of Georgia. The deal follows a supply agreement L&F signed with a US battery technology company in July, extending its customer base to a domestic battery maker as well.

L&F also provided an update Thursday on the progress of mid-to-long-term targets set at its first Investor Day in 2024. This year's cathode shipment volume is expected to roughly double that of 2024. The company also projected that its 2027 shipment volume and the share of new overseas customers would both exceed the goals set at the time.

Investors attending the event toured the L&F Plus LFP production line, observing the full process from raw material input through cathode production and storage, and checking on commercial production readiness.

L&F Chief Financial Officer Ryu Seung-heon said the event gave the company a chance to share directly with investors both the business results achieved so far and its growth strategy going forward. "We will deepen the technological competitiveness of our high-nickel NCM, aggressively expand the LFP business, and broaden our foundation into new growth areas such as 46-series cells and robotics," he said.

Ryu added that the company would "continuously diversify our product, customer and regional portfolio to strengthen our ability to respond to market changes, and enhance corporate value on the basis of a differentiated growth platform."