L&F Co., a key supplier of battery materials for electric vehicles (EVs), including Tesla Inc., has clinched a significant $6.8 billion contract to supply cathodes to a leading cell producer in Europe. The deal spans from January 2025 to December 2030, involving the supply of 176,000 tons of cathodes, sufficient to manufacture batteries for approximately 1.76 million EVs.
Industry insiders in Seoul speculate that the unnamed European client is Northvolt AB, Europe’s top EV battery manufacturer. This assertion is backed by Northvolt’s capacity to handle such a large-scale production, aligning with the volume specified in the contract. Notably, Northvolt has previously engaged in major procurement deals with other South Korean suppliers, strengthening the likelihood of this partnership.
This strategic move by L&F is part of its broader effort to diversify its customer base and reduce dependency on its main clients, LG Energy Solution Ltd. and Tesla. By broadening its market presence, L&F aims to secure 50% of its total sales from LG Energy, 30% from the global EV market, and 20% from SK On Co. by 2025.
The agreement not only underscores L&F’s expansion ambitions but also highlights its commitment to sustainability. The company plans to utilize recycled materials to meet stringent European environmental standards, thus aligning with the continent’s ESG regulations. This approach positions L&F favorably in a market increasingly driven by environmental considerations.
