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Lee Byung-hee, chief operating officer (COO) of L&F (right), and Kim Sung-tan, head of raw material procurement at SK On (left), pose for a commemorative photo after signing an LFP cathode material purchase agreement at SK On's Gwanhun campus in Jongno-gu, Seoul, on Thursday the 17th. / L&F

L&F has signed a contract worth approximately 160 billion won to supply lithium iron phosphate (LFP) cathode materials to SK On. Securing an additional client just two months after signing a deal with a U.S. battery technology firm in July, the company broadened the customer base for its commercial LFP cathode production set to begin later this month. The deal also expands its business portfolio into LFP, diversifying beyond high-nickel cathodes.

According to L&F on the 18th, it signed the approximately 160 billion won supply agreement with SK On the previous day at SK On's Gwanhun campus in Jongno-gu, Seoul. The contract runs from September 17, 2026, through December 31, 2028, with options to negotiate an additional three-year extension depending on market conditions, delivery performance, and customer demand.

Under this agreement, L&F will begin supplying SK On with non-Chinese LFP cathode materials. Targeting the growing demand for supply chain diversification in an LFP cathode market dominated by Chinese players, L&F plans to adjust delivery volumes in line with its client's production schedules and market demand.

The cathode materials will be produced at L&F's dedicated LFP plant located in the Daegu Dalseong National Industrial Complex. In August last year, L&F established a wholly owned subsidiary, L&F Plus, and invested 338 billion won across an approximately 100,000-square-meter site to complete the plant in May. After shipping its first pilot production batch from the domestic LFP mass-production line on July 31, the company has been conducting customer evaluations and process stabilization.

At the end of this month, the plant will enter commercial mass production with an annual capacity of 30,000 metric tons. The product will be a high-density, third-generation LFP cathode material with a pressed density (PD) exceeding 2.50 g/cc, designed to address and improve upon the lower energy density typical of conventional LFP chemistry. Production capacity is planned to expand up to 60,000 metric tons annually by the first half of 2027, with further expansions under consideration based on market demand.

Lee Byung-hee, chief operating officer (COO) of L&F, said, "Backed by stable mass-production capabilities and differentiated product competitiveness, we will continue to expand customer acquisition across the ESS and entry-level EV markets, leaping forward as a key materials provider leading the global non-Chinese LFP supply chain."

                                                                                                            Lee Seo-yeon