L&F Company to Begin Production of High Nickel NCM Cathodes for BEV Batteries

South Korean battery materials producer L&F Company announced plans to begin production of nickel-cobalt-manganese (NCM) cathodes for battery electric vehicles (BEVs) by the end of 2024. The new cathodes will feature 95% nickel content, the highest used so far in BEV battery cathodes.

The company made the announcement during its third-quarter earnings presentation, revealing a 37% drop in revenues to KRW 352 billion (US$270 million) and an operating loss of KRW 72 billion (US$52 million), largely due to weak selling prices, a fall in EV sales in Europe, and low demand from the energy storage systems (ESS) sector.

Production of the N95 cathodes will begin with shipments to South Korean and U.S.-based manufacturers of 46-type cylindrical battery cells in December. L&F supplies cathode materials to major players including Tesla, LG Energy Solution, SK On, and Samsung SDI. High nickel content is crucial for increasing energy density in lithium-ion batteries, thereby extending the driving range of BEVs. The company highlighted that it has overcome key technological challenges, enabling the transition from "N90" to "N95".

L&F anticipates growth opportunities, stating, "With the growing trend of global automotive and battery companies adopting '46' products, L&F anticipates securing new customers and increasing volume in the future."