L&F signs long-term LFP cathode supply deal with LG Energy Solution worth W1.03tr

Battery materials maker L&F announced Tuesday that it signed a long-term supply agreement with LG Energy Solution on Monday for lithium iron phosphate, or LFP, cathode materials.

Under the deal, L&F will supply LG Energy Solution with LFP cathode materials worth approximately 1.03 trillion won ($772 million) over four years from 2028 through 2031, expanding its production capacity through new factory construction. The agreement extends the two companies' existing partnership — previously limited to high-nickel NCM (nickel-cobalt-manganese) cathode materials — to cover LFP cathode materials as well.

The contract is seen as significant in that it allows L&F to diversify its product and customer portfolio by building on both high-nickel NCM and LFP cathode materials as twin pillars, while strengthening its medium- to long-term business foundation in the LFP market.

Demand for LFP cathode materials is growing as the proliferation of AI data centers drives up demand for energy storage systems, or ESS, and the United States gradually tightens Non-Prohibited Foreign Entity requirements for batteries and components used in ESS applications — raising the importance of non-China supply chains. L&F plans to leverage its domestic production base to actively meet global customers' growing need to diversify their supply chains.

L&F signed medium- to long-term LFP cathode supply agreements with Samsung SDI in March and with SK On in September. The company also expanded its application scope beyond ESS into defense and mobility through a supply agreement with CoreShell, a US battery technology firm.

L&F plans to scale up its annual production capacity to 60,000 tons by the first half of 2027 and said it will closely review additional expansion in line with rapidly growing demand.

"As LFP cathode materials gain wider adoption in the global battery market and calls for supply chain diversification grow louder, we have been able to extend the trust we built with LG Energy Solution in the NCM cathode space into LFP as well," said Lee Byung-hee, L&F's chief operating officer. "We will strengthen our position in the North American market on the back of our differentiated product competitiveness and our strength in the global non-China LFP supply chain."

Meanwhile, L&F last month showcased its cathode material technology and future growth vision at the 2026 Korea Future Mobility Expo, known as DIFA 2026, held at Daegu EXCO. Under the theme "Leading the Future," the company presented NCM and LFP cathode material samples alongside hands-on exhibition displays.