ELNFF has signed a supply agreement worth approximately 1 trillion won for lithium iron phosphate (LFP) cathodes with LG Energy Solution. Following agreements with Samsung SDI and SK On, ELNFF has secured all three major domestic battery manufacturers as clients, expanding its presence in the LFP cathode market.
On November 2, ELNFF announced it had finalized a long-term supply contract with LG Energy Solution valued at around 1.35 trillion won. The contract spans four years, from 2028 to 2031. ELNFF plans to supply the contracted volume by expanding its production capacity.
This agreement broadens the collaboration between the two companies from high-nickel nickel-cobalt-manganese (NCM) cathodes to LFP cathodes. ELNFF aims to diversify its product range and customer base by focusing on both high-nickel NCM and LFP as its core offerings.
Notably, this contract signifies ELNFF's strategy to diversify its product and customer portfolio, strengthening its long-term business foundation in the LFP market. The demand for LFP cathodes is increasing due to the expansion of AI data centers and the gradual tightening of Non-PFE (non-prohibited foreign entity) requirements by the U.S. for batteries and components used in energy storage systems (ESS), highlighting the importance of non-Chinese supply chains. ELNFF plans to actively respond to global customers' needs for supply chain diversification based on its domestic production capabilities.
Earlier this year, ELNFF signed long-term supply agreements for LFP cathodes with Samsung SDI in March and SK On in September. Additionally, through a supply agreement with U.S. battery technology firm CoreShell, ELNFF is expanding its applications beyond ESS to defense and mobility sectors, seeking new demand across various industries.
ELNFF began mass production of LFP cathodes at an annual capacity of 30,000 tons in late September, just two months after its subsidiary ELNFF Plus shipped its first pilot products. The company plans to increase its production capacity to 60,000 tons by the first half of 2027 and is closely reviewing additional expansions in response to surging demand.
Lee Byung-hee, Chief Operating Officer of ELNFF, stated, "As the application of LFP cathodes expands in the global battery market and the demand for supply chain diversification grows, we have extended the trust built with LG Energy Solution in the NCM cathode sector to LFP cathodes. We will strengthen our position in the North American market based on differentiated product competitiveness and a global non-Chinese LFP supply chain."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.