L&F signs $774 million LFP contract with LG Energy Solution

L&F agreed on Nov. 3, 2026 to supply LG Energy Solution with 1.035 trillion won ($774 million) of lithium iron phosphate cathode materials over four years.

The contract represents 48% of L&F's 2025 consolidated revenue of 2.155 trillion won. The valuation reflects minimum contracted volumes at recent selling prices, the cathode maker said in a regulatory filing.

Commercial shipments start in January 2028 and continue through December 2031. The underlying transaction contract took effect on Nov. 2, 2026 and expires Dec. 31, 2031.

L&F will deliver the cathode powder to LG Energy Solution production facilities located in South Korea and abroad. The transaction terms require no initial down payment or advance deposit.

Lithium iron phosphate — an iron-based cathode chemistry known as LFP — replaces expensive nickel and cobalt with lower-cost materials. The formula provides longer service life and higher thermal stability for utility power storage.

The contract widens an existing relationship previously concentrated on high-nickel nickel-cobalt-manganese cathode chemistries. L&F established itself as a primary supplier of nickel-rich formulations to LG Energy Solution over the past decade.

The commercial trust built through high-nickel cathode deliveries now extends directly into iron-based formulations, said Lee Byung-hee, chief operating officer of L&F. The partnership provides vital production visibility for long-term manufacturing operations, Lee said.

The transaction makes LG Energy Solution the third domestic cell producer to procure iron-based cathode stock from L&F. The transaction completes a sweep across South Korea's three major cell manufacturers.

L&F previously secured a multi-year LFP cathode supply agreement worth 1.6 trillion won with Samsung SDI in March. That supply supported Samsung SDI's conversion of assembly lines for North American grid storage projects.

SK On followed in September with an LFP contract valued at 161.7 billion won. That agreement established domestic cathode feedstock for SK On's stationary battery systems and commercial fleet modules.

L&F will process the volume through its dedicated cathode manufacturing subsidiary, L&F Plus. The subsidiary completed qualification runs and started commercial production at an annual rate of 30,000 tons in late September.

L&F Plus plans to double total annual capacity to 60,000 tons during the first half of 2027. The manufacturing campus operates inside the Daegu National Industrial Complex in Dalseong County.

Surging power requirements from artificial intelligence data centers have accelerated utility procurement of containerized storage units. Grid operators specify iron-phosphate chemistries because cells endure repeated deep discharge cycles without overheating risks.

Tighter rules under U.S. clean energy subsidy frameworks penalize cell assemblies containing components from prohibited foreign entities. South Korean cell producers must replace Chinese mineral refiners to protect subsidy eligibility and avoid import tariffs.

LG Energy Solution previously procured iron-phosphate cathode powders from Chinese chemical processor Changzhou Liyuan. The agreement with L&F gives the manufacturer an established merchant supplier situated entirely outside Chinese jurisdiction.

Domestic rival POSCO Future M signed a preliminary pact with LG Energy Solution on Oct. 30. That memorandum outlined prospective shipments of 720,000 tons of cathode and anode powders through 2033.

The simultaneous commitments establish a two-way domestic contest between L&F and POSCO Future M. Both materials specialists aim to capture market share surrendered by Chinese suppliers in North American energy projects.

Final settlement figures will fluctuate as underlying prices for lithium carbonate and iron salt shift over time. L&F recalculates billing rates periodically against published global raw material price benchmarks, the filing said.

Beyond utility power installations, L&F supplies specialized battery powders to U.S. technology developer CoreShell. That joint program addresses specialized military equipment, marine power packs and entry-level electric vehicle platforms.

The regulatory filing does not disclose the exact metric tonnage committed under the agreement or the pricing formula tied to raw material benchmarks.

L&F Plus will begin customer qualification testing for its new manufacturing lines in 2027 before commercial shipments start. The four-year delivery schedule begins in January 2028.