L&F's operating loss last year narrowed from a year earlier. As shipments of high-nickel cathode materials increased, utilization recovered, and as materials and supplies prices rebounded, inventory valuation write-backs occurred. L&F's annual shipments last year rose 34% from the previous year, and shipments of high-nickel cathode materials increased 75%.
L&F said on Feb. 5 that on a consolidation basis last year's sales were 2.1549 trillion won and operating loss was 156.8 billion won. Sales rose 13% from a year earlier, and the size of the operating loss also improved 71.9% from the previous year's 558.7 billion won. Operating profit in the fourth quarter of last year was 82.4 billion won, up 273% from the previous quarter.
L&F expects shipments of cathode materials to increase more than 20% this year. L&F projected that full-year operating profit will swing to a surplus by expanding supply of high-nickel cathode materials and new 46-diameter products.
According to L&F, supply of high-nickel cathode materials for recent 46-diameter cylindrical batteries is ramping up in earnest. The product applies single-crystal materials to improve energy density and life characteristics. It is considered suitable for next-generation applications such as Humanoid Robot, where high density and high output are required.
Through a conference call, L&F said, "We began shipments for a new customer from the end of last year, and in 2026 it will expand to about 6% of total shipments." L&F plans to expand its application areas to new industries such as robots as well as electric vehicles, further strengthening its differentiated competitiveness.
L&F is also pursuing a lithium iron phosphate (LFP) cathode materials business. L&F is investing in LFP facilities totaling 60,000 tons by next year. It plans to begin mass production in stages starting in the third quarter this year. If the LFP business ramps up in earnest, the high-nickel-centered business structure is expected to see diversification of revenue sources and growth.
Ryu Seung-heon, L&F's chief financial officer (CFO), said, "Through the 46-diameter and LFP new businesses, we will continuously expand our mid- to long-term growth and revenue base and ensure L&F's competitiveness and differentiation are realized."