SEOUL — L&F Co., a prominent South Korean pioneer in secondary battery materials, officially announced on Thursday that its wholly-owned subsidiary, L&F Plus, has been selected as the final recipient of a massive financial support package worth KRW 220 billion (approximately USD 160 million) from the state-backed National Growth Fund.
The decision was finalized during a comprehensive convention of the National Growth Fund Asset Management Review Committee held on May 28. This monumental funding package is structured as a long-term, low-interest loan with a maturity period spanning 12 years. Crucially, the aggregate sum includes a substantial KRW 170 billion allocation drawn directly from the government’s specialized Advanced Strategic Industry Fund. In alignment with strict capital allocation mandates, L&F Plus intends to deploy the entire capital injection exclusively toward financing high-capacity manufacturing facilities and critical hardware integration.
The primary objective behind this financial endorsement is to catalyze the establishment of South Korea’s very first and largest dedicated Lithium Iron Phosphate (LFP) cathode materials manufacturing facility. Driven by the global electric vehicle (EV) market's shifting requirements toward cost-efficient and thermally resilient chemistries, the initiative represents a pivotal milestone in the nation's broader strategy to decouple its battery supply chain from overwhelming foreign dependencies.
Recognizing the immense potential of the low-cost battery segment, L&F laid the groundwork for this venture in August of last year by incorporating L&F Plus as a separate corporate entity tasked entirely with the research, development, and commercialization of LFP cathode materials. Exhibiting remarkable execution agility, the subsidiary successfully completed the construction of its dedicated LFP manufacturing plant in May 2026, marking a construction cycle of just nine months since the initial groundbreaking ceremony.
The newly constructed infrastructure spans an impressive 100,000 square meters within the Phase 2 zone of the Daegu National Industrial Complex, located in Guji-myeon, Dalseong-gun, Daegu. According to the company's internal roadmap, L&F Plus is scheduled to commence commercial mass production by the end of the third quarter of this year, targeting an initial annualized production capacity of 30,000 metric tons. Looking further ahead, the firm plans a subsequent expansion phase designed to double its output, aiming to achieve an aggregate annual capacity of 60,000 metric tons by the first half of 2027.
"The confirmation of support from the National Growth Fund serves as a powerful validation of the extreme strategic importance of domesticating LFP cathode technology within the secondary battery sector—a vital pillar of our national advanced strategic industry," said Hur Jae-hong, CEO of L&F. "This selection is a resounding endorsement of our proprietary technology and robust operational execution capabilities."
CEO Hur further elaborated on the long-term vision, stating that L&F Plus is fully committed to stabilizing its near-term manufacturing output. By ensuring a steady stream of locally produced materials, the company aims to significantly fortify the domestic and North American supply chains for critical battery components, while substantially upgrading the overall global competitiveness of South Korea's overarching battery industry amid escalating geopolitical and macroeconomic pressures.
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