Building end-to-end recycling system for NCM and LFP batteries

Partnership targets CRMA compliance and recycled raw material supply chain

An aerial view of the L&F Plus factory at the Daegu National Industrial Complex. [L&F]
An aerial view of the L&F Plus factory at the Daegu National Industrial Complex. [L&F]

L&F said Tuesday it will formally launch a battery recycling business covering both nickel-cobalt-manganese (NCM) and lithium iron phosphate (LFP) batteries, backed by a strategic partnership with CIS Chemical. The company plans to strengthen its recycling technology across the full chain — from pre-processing to post-processing — to secure a competitive supply of recycled raw materials.

The battery recycling market is expanding rapidly amid tightening regulation in Europe, including the EU's Critical Raw Materials Act (CRMA). South Korea enacted legislation in May governing the management and industrial development of used batteries, while the EU is phasing in mandatory minimum thresholds for recycled content.

Recycling capability is emerging as a core competitive asset — one that addresses global regulatory requirements while simultaneously improving cost competitiveness and supply chain stability.

L&F has built pre-processing capabilities for spent cathode materials and black mass through its subsidiary JH Chemical (JHC). The latest investment will add post-processing technology capable of recovering lithium, nickel and other key metals at high purity, completing a recycling system that spans both NCM and LFP chemistries as well as the full pre- and post-processing cycle.

CIS Chemical, the company in which L&F has invested, is the only firm in South Korea to have achieved commercial-scale post-processing of LFP batteries. Using its proprietary hydrometallurgical technology, it recovers lithium carbonate at a rate of approximately 98 percent. The company has also completed technical validation of its LFP recycling process with major domestic customers.

The two companies plan to expand collaboration across several areas: developing high-purity nickel-cobalt mixed hydroxide (Clean-MHP) for NCM batteries, commercializing LFP recycling, conducting joint development research on LFP re-materialization technology, and pursuing government-funded research projects.

"This investment goes beyond a simple equity stake — it is a strategic decision to formally launch our battery recycling business," L&F Chief Executive Heo Je-hong said. "We have now added post-processing competitiveness to the pre-processing recycling capabilities we have built up, and we will use our cathode material technology and customer base to expand our recycled raw material supply chain and proactively meet our customers' circular economy requirements."


eyre@heraldcorp.com