LS-L&F Battery Solution has completed construction of a precursor materials factory in the Saemangeum National Industrial Complex in Gunsan, South Korea. Spanning approximately 132,000 m², the facility represents a 1 trillion won investment and is expected to create around 1,000 jobs. Precursor compounds—blends of nickel, cobalt, manganese, aluminum and other metals—serve as the core feedstock for cathode materials, which are essential components of lithium-ion batteries.
LS Group Chairman Koo Ja-eun commented that the new factory aims to reduce South Korea’s reliance on Chinese suppliers, which currently hold about 80% of the global precursor market, and to establish a domestic hub for advanced battery materials. He noted that recent U.S. policy measures are accelerating the de-sinicization of battery supply chains and opening opportunities for South Korean producers in North America.
Established in October 2023 as a joint venture between LS Corp. and high-nickel cathode specialist L&F, the new subsidiary began trial production this spring after securing full operational approval in April. Production targets are set at 20,000 metric tons of precursors by 2026, ramping up to 40,000 tons in 2027 and 120,000 tons by 2029—enough to support manufacturing of materials for roughly 1.3 million electric vehicles.
To reinforce the domestic supply chain, LS MnM, the group’s nonferrous metals unit, is constructing a nickel sulfate plant in Ulsan with a planned completion date in 2027 and a capital expenditure of 1.8 trillion won. Once onstream, the facility will produce 62,000 tons of nickel sulfate annually for use in precursor production, enabling a vertically integrated material flow from refining to cathode manufacturing.
Heo Je-hong, chairman of L&F, described the Saemangeum plant as a “turning point” for Korea’s secondary battery industry and a foundation for leading the global shift toward eco-friendly energy.
Source: The Chosun Ilbo
