12-year low-interest loan finalized

Annual capacity of 60,000 tons targeted by 2027

An exterior view of the L&F Plus facility. [Courtesy of L&F]
An exterior view of the L&F Plus facility. [Courtesy of L&F]

L&F Plus, a subsidiary of battery materials maker L&F, has secured 220 billion won ($145 million) in long-term, low-interest loans from the National Growth Fund to accelerate mass production of lithium iron phosphate cathode materials.

L&F announced Thursday that L&F Plus was selected as a final recipient of the 220 billion won loan package at a fund management review committee meeting held May 28.

The financing is intended to support construction of what would be South Korea's first and largest dedicated LFP cathode factory. The total package — including 170 billion won from the Advanced Strategic Industries Fund — will be disbursed as a 12-year low-interest loan, with all proceeds earmarked for facility investment.

LFP batteries offer lower energy density than nickel- and cobalt-based ternary batteries but carry advantages in price competitiveness and stability. Demand for LFP cathode materials has been rising rapidly in the energy storage system and mass-market electric vehicle segments. However, no domestic company currently produces LFP cathode materials at commercial scale, and the need to build a local supply chain has been consistently raised by the industry.

L&F established L&F Plus as a wholly owned subsidiary in August last year to handle LFP cathode production and sales. Nine months after breaking ground, the company completed construction of a dedicated LFP cathode factory — spanning roughly 100,000 square meters inside the national industrial complex in Dalseong-gun, Daegu — last month.

L&F Plus plans to begin mass-producing LFP cathode materials at an annual capacity of 30,000 tons by the end of the third quarter this year, and to scale up to 60,000 tons annually by the first half of 2027.

"This National Growth Fund support is recognition of the importance of localizing LFP cathode materials in the secondary battery sector — a core national strategic industry — as well as of our technological capabilities and project execution," L&F Chief Executive Heo Je-hong said. "We will pursue stable mass production of LFP cathode materials and contribute to strengthening the domestic and North American core materials supply chain and enhancing the competitiveness of the battery industry."


eyre@heraldcorp.com