L&F (066970.KQ) announced on the 9th that it has completed construction of an NCM (nickel-cobalt-manganese) precursor production facility with an annual capacity of 40,000 tons in the Saemangeum National Industrial Complex in North Jeolla Province, through LS-L&F Battery Solution (LLBS), its joint venture with LS Group (006260.KS). The plant is set to begin commercial operation in the fourth quarter of this year.
L&F is expected to complete a vertically integrated value chain spanning from precursors to cathode materials. The company will be able to manage operations from raw material procurement to production, with anticipated benefits in cost reduction and improved profitability.
L&F is projected to significantly enhance its ability to serve global customers, particularly in the North American and European markets, based on its domestic precursor supply chain. In the United States in particular, supply chain regulations require companies to meet Non-PFE (non-prohibited foreign entity) requirements.
"LLBS plays a core role in our mid- to long-term growth strategy and serves as a foundation for securing both cost competitiveness and supply chain stability," said Heo Je-hong, CEO of L&F. "Through cooperation with LS MnM, we will build a production system spanning from raw materials to precursors and cathode materials, and continuously strengthen our competitive edge in the global market, sustaining a growth strategy in which both companies can achieve a win-win outcome."
