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[Alpha Biz=(Chicago) Reporter Kim Jisun] LS will enter the precursor business, a core technology material for cathode materials, with L&F, a company specializing in high-nickel cathode materials.
LS announced on the 16th that it would establish ‘LS-L&F Battery Solution’ (tentative name), a precursor joint venture with L&F. The two companies plan to start construction of a precursor plant, which is a material for secondary batteries, within the year based on the Saemangeum Industrial Complex in Jeonbuk. It plans to start mass production in 2025-2026 and aims to produce 120,000 tons a year in 2029. The total business scale is over 1 trillion won.
The joint venture will be launched as a joint management system with LS holding a 55% stake and L&F holding a 45% stake. Through the joint venture, the two companies plan to carry out comprehensive business cooperation in the secondary battery cathode material business, from precursor manufacturing and sales to nickel sulfate and recycling.
LS will supply nickel sulfate produced by its affiliate LS M&M to the joint venture. L&F plans to produce secondary battery cathode materials by receiving precursors produced by the joint venture. Through this, the company plans to establish an industrial value chain that leads to nickel sulfate, precursors, and cathode materials.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
