L&F swings to an operating loss of 26.5 billion won in Q3 amid sharp drops in the exchange rate and raw material prices

[Financial News] L&F announced on the 5th that it swung to an operating loss of 26.5 billion won in this year's third quarter, compared with an operating profit of 22.1 billion won in the same period last year.
L&F said that third-quarter revenue was 874.4 billion won. It explained that external factors—the sharp drops in the won-dollar exchange rate and prices of key raw materials—caused the operating loss, and that NCM business profitability remained solid when those factors were excluded. It also forecast that this year's NCM shipments would rise about 40% from the previous year to a record high.
L&F forecast that it would set a new quarterly high for high-nickel shipments in Q4, supported by stable, exclusive supply of ultra-high-nickel products and increased sales of 46-pi products to new customers in North America. It said that it had continued to achieve volume growth of at least 30% for a second consecutive year, even as growth in the global electric vehicle (EV) market slowed. L&F said expectations for an annual profit were rising as shipments increased and capacity utilization recovered.
Growth is expected to accelerate in 2027, led by next-generation 46-pi products. The company expects shipments for existing and new 46-pi projects to ramp up in earnest, bringing 46-pi products to about 40% of NCM shipments. It also expects total NCM shipments to grow by double digits and set a new record for the second consecutive year.
In its Lithium iron phosphate (LFP) business, L&F signed mid- to long-term supply agreements this year with four customers: South Korea's three major battery cell makers and one overseas customer. The volume amounts to about 100 GWh on an energy storage system (ESS) battery basis. On this basis, the company forecasts shipments of about 50,000 tons in 2027 and at least 60,000 tons in 2028. It said the new agreements also secured additional annual supply volumes of at least 30,000 tons starting in 2028. As demand for materials sourced outside China grows in the North American ESS market, discussions on additional supply with global customers are also ongoing. L&F expects new revenue and profit contributions from its LFP business to gain momentum starting in 2027.
L&F Chief Financial Officer (CFO) Ryu Seung-heon said, “2026 has been a meaningful year: despite uncertainty in the global EV market, record shipments have been achieved on the strength of differentiated high-nickel technology, and a new growth foundation has been secured for the LFP business through mid- to long-term supply agreements with South Korea's three major battery cell makers.”
Ryu Seung-heon added, “In 2027, as supply from existing and new 46-pi projects expands and LFP volumes for the North American ESS market increase in earnest, the combined growth of the NCM and LFP businesses will drive substantial revenue growth and improved profitability, making it a year of new strides.”
[email protected] Kim Dong-chan Reporter