L&F Maintains Shipment Growth, Confident in Achieving Profit Turnaround in Q3

Surge in demand for new Ni-95% product drives strong shipment growth; upward shipment trend expected to continue in second half

Q2 revenue increased by approximately 43% quarter-on-quarter, proving a recovery trend

Q3 profitability improvement expected due to reduced inventory valuation loss risk and recovery in operating rate

Secured long term sustainable growth momentum through expansion of global customer orders and full-scale launch of LFP business

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Aug. 01, 2025 08:31

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DAEGU--(Korea Newswire)--Despite the slowdown in the global electric vehicle market, L&F continued its shipment growth, strongly signalizing confidence in profit improvement in the second half of the year.

At the earnings call on the 30th, L&F announced that its shipment volume in Q2 2025 grew approximately 55% quarter-on-quarter, marking a clear upward trend for the upcoming quarter. The company stated that shipment growth was driven by the recovery of customer market share through exclusive supply of the new Ni-95% product and the ramp-up of large-scale shipments of new products. It added that with continued expansion of Hi-Ni product shipments and a recovery in volume for the European market, the upward trend in cathode material shipments is expected to continue through the second half of the year. Furthermore, the company reaffirmed its initial annual shipment target for 2025, maintaining a growth rate of 30-40% compared to the previous year.

Supported by shipment growth, Q2 revenue 520.1 billion KRW, marking an approximately 43% increase quarter-on-quarter and demonstrating a clear recovery trend. Operating loss improved by about 14% from the previous quarter to -121.2 billion KRW, but the profit improvement was limited compared to the revenue growth. The company explained, “In Q2, raw material prices hit their lowest level in June, resulting in additional losses, and the decline in the currency exchange rate also posed a significant challenge to profitability recovery.”

L&F has designated the upcoming third quarter as a pivotal turning point for profitability, expressing confidence in achieving a positive operating result. The company anticipates that, provided there are no further declines in lithium prices, the pressure from inventory valuation losses will be substantially reduced. Coupled with an expansion in shipment volumes and a corresponding recovery in operating rates during Q3, L&F expects these factors to accelerate improvements in profitability. Additionally, the recent indications of a rebound in lithium carbonate prices are expected to contribute favorably to the company’s financial performance.

The company plans not only to achieve short-term profitability recovery but also to secure long-term growth momentum by establishing new revenue drivers. The new LFP business is being steadily advanced through strategic partnerships with global cell makers such as SK On. Furthermore, with the recent surge in demand for energy storage systems (ESS), LFP cathode material demand has significantly exceeded initial expectations, presenting promising opportunities for additional orders.

L&F CFO Sunghun Yu stated, “We will continue to secure growth momentum across the entire EV and ESS markets by expanding our product portfolio based on differentiated technological capabilities.” He added, “With LFP projects progressing smoothly with both domestic and global clients, we are committed to delivering meaningful results shortly.”

Website: https://www.landf.co.kr/index.html