South Korea’s L&F breaks into European cathode market with $6.8B deal
High-nickel NCMA
L&F, a major supplier of cathode active materials (“CAMs”) out of South Korea, has been awarded a $6.8B contract to an undisclosed European cell producer.
L&F will supply 176 kt of CAM from January 2025 through December 2030. The deal marks the first time a Korean company has entered into a CAM supply agreement with a European customer.
The Korean Economic Daily Global rumored the deal involved Northvolt, Europe’s largest EV battery maker, by deducing that Northvolt is the only company that can make use of that volume of CAM. Furthermore, L&F and Northvolt were expected to sign a broader $15B deal, as announced in October 2023.
L&F flagship product is a high-nickel NCMA cathode, with 77% of product going to LG Energy Solution and Tesla. The new deal is intended to diversify L&F’s customer base.
L'avis d'Adamas :
The average 22 GWh/yr of cell production implied in 176 kt CAM could be deployed by a number of cell companies in Europe from 2025, however, given the buildup of datapoints pointing to an L&F-Northvolt tie-up, the rumor offers credibility.
The entrance of Korean CAM into Europe has been long anticipated. Geopolitically, the union makes sense, although logistics are challenging.
Chinese companies are increasingly opting to set up shop within Europe itself, as evidenced by the Hunan Yuneng news piece.
[Extrait du numéro de mai de la service EV Battery Lithium Monthly .]
Image: L&F Technological Research Center
Chris Williams, analyste chez Adamas Intelligence
Chris est analyste chez Adamas Intelligence, où il se consacre au secteur mondial du lithium. Il mène des recherches et analyse la chaîne de valeur du lithium afin d'identifier des opportunités concrètes pour les clients.
Chris possède 11 ans d'expérience dans l'optimisation des opérations minières et pétrolières et gazières, où il a su créer de la valeur grâce à l'analyse de données à grande échelle. Il a obtenu une licence et un master en ingénierie à l'université du Queensland, avec une spécialisation en génie mécanique, et termine actuellement un master en administration des affaires à l'université de Colombie-Britannique.
