South Korean battery materials maker L&F Co. will start mass-producing cathodes with 95% nickel content next month, pushing the boundaries of electric vehicle battery technology while wrestling with mounting losses.
The company will supply the high-density cathodes to Korean battery manufacturers and US automakers, marking the industry’s first achievement of such nickel concentration in battery components. Each percentage point increase in nickel content can extend an EV’s range by 10 kilometers, according to industry experts.
The move comes as L&F seeks to distance itself from Chinese competitors focused on cheaper lithium iron phosphate batteries. The company already supplies high-nickel materials to General Motors Co. through a partnership with LG Energy Solution Ltd.
The strategy carries risks. L&F reported an operating loss of 72.4 billion won ($52.4 million) in the third quarter. Market watchers warn that if the current EV market slowdown persists, premium cathode makers could face significant headwinds.
The company secured a $2.91 billion cathode supply deal with Tesla Inc. for 2024-2025. L&F is also developing cathodes with 97% nickel content while exploring expansion into anode production, according to CEO Choi Su-an.
Rival EcoPro BM Co. is close to mass-producing cathodes with 94% nickel content, intensifying competition in the premium segment.
