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L&F Plus, a subsidiary of secondary battery materials specialist L&F, will receive 220 billion won in funding from the National Growth Fund.
According to L&F on the 4th, L&F Plus was finally selected as a recipient of long-term, low-interest loans at the National Growth Fund's fund management review committee held on the 28th of last month.
The funding is intended to build Korea's first and largest dedicated LFP (lithium iron phosphate) cathode material plant. A total of 220 billion won, including 170 billion won from the Advanced Strategic Industry Fund, will be provided as a 12-year long-term, low-interest loan. The full amount will be invested for facility purposes.
LFP cathode materials boast excellent thermal stability and cost competitiveness, driving rapidly expanding demand in domestic and overseas energy storage system (ESS) and entry-level electric vehicle (EV) markets. Until now, no company in Korea had mass-produced LFP cathode materials at commercial scale.
In August last year, L&F established L&F Plus, a wholly owned subsidiary dedicated to producing and selling LFP cathode materials. In May this year, about nine months after breaking ground, it completed a dedicated LFP cathode material plant spanning roughly 100,000 square meters within the second phase of the national industrial complex in Guji-myeon, Dalseong-gun, Daegu. L&F Plus plans to begin mass production of 30,000 tons of LFP cathode materials annually by the end of the third quarter this year, and to build a total annual mass-production capacity of 60,000 tons by the first half of 2027.
L&F CEO Heo Je-hong said, "This confirmation of National Growth Fund support recognizes the importance of localizing LFP cathode materials in the secondary battery sector, a key national strategic industry, as well as our independent technology and business execution capabilities," adding, "We will contribute to strengthening domestic and North American core material supply chains and enhancing the competitiveness of the battery industry."
