L&F invests in CIS Chemical… collaboration on LFP∙NCM battery recycling

L&F, a specialist in secondary battery materials, announced on the 29th that it has signed a strategic investment agreement with CIS Chemical to strengthen cooperation in the recycling sector. The investment signing ceremony, held at the company's headquarters in Daegu, was attended by key executives including L&F CEO Heo Je-hong, CFO Ryu Seung-heon, and CPO Jang Seong-kyun, as well as representatives from CIS Chemical, including CEO Lee Seong-oh and Vice President Kim Young-man.

This investment is a follow-up to the memorandum of understanding (MOU) on LFP (lithium iron phosphate) and NCM (nickel, cobalt, manganese) recycling cooperation signed in May, and is aimed at solidifying a strategic partnership to build a battery circular economy ecosystem and strengthen the supply chain based on recycled materials. Through this, L&F has secured a system to stably respond to its customers' recycling demands.

Based on CIS Chemical's specialised recycling capabilities, L&F will secure a stable supply of LFP and NCM post-processing volumes, and will be given priority access to LFP recycling capacity (CAPA) by 2027 to jointly respond to customers' recycling needs. In addition, the company plans to pursue joint research and development (JDA) in key technology areas, including the development of high-purity mixed hydroxide (Clean-MHP) to reduce cathode material costs, as well as LFP recycling and re-materialisation technologies, and will expand cooperation on national research and development projects, including participation in government-led initiatives.

Through this collaboration, L&F is expected to expand the use of recycled raw materials for key inputs such as lithium carbonate. CIS Chemical possesses recycling technology with a lithium carbonate recovery rate of up to 98%, based on its independently developed process, and has completed verification of its LFP recycling technology with major domestic customers. With limited companies having commercialised LFP post-processing in South Korea, L&F will proceed with stable post-processing business cooperation with CIS Chemical and strengthen its waste cathode material and black mass (BM) recycling business in connection with its subsidiary JH Chemical Industry (JHC).

Furthermore, the company plans to expand group-level synergies by pursuing cooperation with its subsidiary L&F Plus on the processing of LFP waste cathode material scrap, and with Saeronix on the supply of cathode material additives (such as cobalt hydroxide and boric acid).

In April, the 'Act on the Promotion of the Used Battery Industry and Support for Supply Chain Stabilisation' passed the National Assembly plenary session, and the European Union (EU) has also mandated the use of recycled raw materials, signalling a full-scale overhaul of regulations. As global regulations tighten, building a battery circular economy system is emerging as a key competitive advantage. Through this investment, L&F plans to strengthen its circular economy-based supply chain and ESG competitiveness.