L&F Secures KRW 1.035 Trillion LFP Cathode Supply Deal

South Korean battery materials manufacturer L&F announced on November 3 that it had signed a long-term supply agreement with LG Energy Solution on November 2 for lithium iron phosphate (LFP) cathode materials. Under the four-year contract, L&F will supply approximately KRW 1.035 trillion worth of materials between 2028 and 2031. To support the agreement, the company plans to expand a new manufacturing plant. The contract also broadens the companies' existing business relationship beyond high-nickel nickel-cobalt-manganese (NCM) cathode materials, extending their cooperation into the LFP segment.

The agreement represents an expansion of L&F's cathode materials business into another battery chemistry. Through its LFP cathode materials subsidiary, L&F Plus, the company began mass production in late September 2026, with an annual manufacturing capacity of 30,000 tons. L&F plans to double this capacity to 60,000 tons annually by the first half of 2027. The company may also consider additional capacity expansion as demand increases. These production plans are intended to support its growing involvement in the LFP cathode materials supply chain and its long-term supply commitments.

Industry Impact & Outlook

The agreement strengthens L&F's position in the LFP cathode materials segment while extending its established cooperation with LG Energy Solution beyond high-nickel NCM materials. The KRW 1.035 trillion contract provides a defined four-year supply commitment beginning in 2028, while the planned manufacturing expansion establishes a production-capacity pathway ahead of deliveries. L&F Plus's increase from 30,000 tons to a targeted 60,000 tons of annual capacity by the first half of 2027 represents a significant planned expansion of its LFP manufacturing operations. Any further investment or capacity increases will depend on how demand develops.

Frequently Asked Questions

What agreement did L&F sign with LG Energy Solution?
L&F signed a long-term contract with LG Energy Solution to supply lithium iron phosphate (LFP) cathode materials. The agreement was signed on November 2 and announced on November 3. It covers approximately KRW 1.035 trillion worth of materials over four years, from 2028 through 2031. The contract also extends the companies' existing cooperation beyond high-nickel nickel-cobalt-manganese (NCM) cathode materials into the LFP cathode materials segment.

What is the value and duration of the LFP supply contract?
The LFP cathode materials supply agreement between L&F and LG Energy Solution is valued at approximately KRW 1.035 trillion over four years. Deliveries are scheduled to cover the period from 2028 through 2031. The contract provides a defined long-term supply arrangement between the two South Korean companies. L&F plans to expand a new manufacturing plant to support the agreement, although the announcement does not specify the precise production volumes allocated to the contract.

When will L&F begin supplying LFP cathode materials under the agreement?
L&F's contracted supply period for LG Energy Solution is scheduled to begin in 2028 and continue through 2031. The agreement was signed on November 2, 2026, and publicly announced the following day. Ahead of the scheduled supply period, L&F is planning to expand a new plant to support production. The company has not disclosed a more specific delivery commencement date or a detailed annual delivery schedule in the announcement.

What is the current production capacity of L&F Plus?
L&F Plus, L&F's subsidiary focused on LFP cathode materials, began mass production in late September 2026 with an annual capacity of 30,000 tons. This establishes its initial production scale for the LFP cathode materials business. L&F plans to increase the subsidiary's annual capacity to 60,000 tons by the first half of 2027. The company may consider additional expansion depending on future demand, but no further capacity target or implementation schedule has been announced.

How much does L&F plan to increase its LFP production capacity?
L&F plans to double its LFP cathode materials production capacity from 30,000 tons to 60,000 tons annually by the first half of 2027. The expansion will be undertaken through its subsidiary, L&F Plus, which began mass production in late September 2026. The company has also indicated that it may consider further capacity increases as demand grows. However, additional expansion remains under consideration rather than a confirmed production commitment.

How does the agreement change L&F's relationship with LG Energy Solution?
The agreement expands L&F and LG Energy Solution's existing cooperation from high-nickel NCM cathode materials into lithium iron phosphate cathode materials. This broadens the scope of their business relationship to include another cathode chemistry. The new contract is valued at approximately KRW 1.035 trillion and covers supplies scheduled from 2028 through 2031. It also creates a long-term supply commitment that L&F plans to support through manufacturing expansion and increased LFP production capacity.