L&F has embarked on establishing a domestic circular supply chain connecting the entire battery recycling process through cooperation with CIS Chemical. The two companies plan to strengthen the foundation for resource circularity by building a system that spans from raw material procurement to re-feedback for LFP and NCM batteries.

L&F announced on the 13th that it signed a business agreement for battery recycling cooperation at the CIS Chemical plant in Gwangyang, Jeollanam-do on the 7th. Key officials, including L&F New Business Development Center Director Joo Jae-hyun and CIS Chemical Vice President Kim Young-man, attended the signing ceremony.

This agreement aims to establish a circular structure domestically that encompasses battery production, recovery after use, and the reintroduction of recycled raw materials. It is interpreted as a strategic approach to secure a stable supply chain amidst intensifying competition for raw materials alongside the increasing demand for battery materials.

The two companies are pursuing cooperation in four areas: joint securing of recycled raw materials, full-process technology collaboration, quality verification of recycled materials, circular economy-based commercialization, and ESG cooperation. In particular, we plan to share supply chain information and quality data focusing on black mass and key metal materials extracted from waste batteries, and to establish a joint sourcing strategy.

In terms of the process, a structure is established where L&F subsidiary JHC supplies black mass through pretreatment, and CIS Chemical recovers key metals through post-treatment. The recovered raw materials are then fed back into L&F's cathode material production. This structure, which links pretreatment and post-treatment, is expected to function as a key model for realizing a circular economy system in Korea.

CIS Chemical has secured a raw material recovery rate of over 98% through its own process, and L&F has been able to increase the utilization of recycled raw materials by connecting this to the cathode material production value chain. At the same time, it is expected to reduce dependence on overseas raw materials and secure a supply base applicable to various battery materials.

The two companies plan to jointly establish application standards for cathode material processes for key recycled materials, such as mixed hydroxides (MHP), lithium carbonate, and iron phosphate, and to cooperate on quality improvement. Based on this, they intend to expand the scope of utilization for recycled materials and identify related business opportunities.

"This agreement serves as an opportunity to concretize the domestic circular structure extending from production to reinvestment," said Joo Jae-hyun, Managing Director of L&F. "We will enhance supply chain stability and lay the foundation to respond to the changing global regulatory environment."