South Korean cathode maker targets 2026 rebound after EV “chasm”
L&F Co., a key supplier of cathode materials for the global electric vehicle battery chain, has named Jae-hong Huh as its new Chief Executive Officer. The appointment, announced Monday following a board meeting, marks a strategic leadership shift as the company prepares to navigate the final stages of a global EV demand slowdown.
Huh, who previously served as CEO from 2018 to 2021 and most recently as Chairman of the Board, returns to the helm to spearhead a 2026 recovery roadmap. His primary mission is to expand L&F’s portfolio beyond premium high-nickel materials into the rapidly growing Lithium Iron Phosphate (LFP) segment—a move designed to break the current dominance held by Chinese competitors.
The Engineering Pivot: NCM Dominance Meets LFP Entry
A USC-trained chemical engineer, Jae-hong Huh is expected to accelerate L&F’s technological differentiation. The company’s “Two-Track” strategy for 2026 aims to secure profitability in the high-end market while capturing volume in the entry-level segment:
- Premium High-Nickel: Mass production of ultra-high-nickel NCM (Nickel-Cobalt-Manganese) cathodes with over 95% nickel content ($LiNi_{0.95}Co_{y}Mn_{z}O_{2}$), aimed at increasing the energy density of flagship EVs.
- LFP Market Entry: L&F is positioning itself as the first South Korean manufacturer to mass-produce LFP materials, offering a localized, IRA-compliant alternative to Chinese suppliers for global OEMs.
Navigating the Industry “Chasm”
The leadership change comes as South Korean battery material firms struggle with a temporary plateau in EV adoption, often referred to as the industry “chasm.” L&F’s stock and earnings have faced headwinds due to fluctuating lithium prices and a cooling European EV market.
“The past two years have been a period of navigating through the industry’s demand slump,” CEO Jae-hong Huh said in a statement. “Starting in 2026, we will focus on diversifying our global customer base and scaling shipment volumes through aggressive sales and innovation.”
Management Shuffle and Market Implications
L&F’s long-time leader Soo-an Choi has been promoted to Vice Chairman. Choi is credited with elevating L&F into a top-tier global supplier during his seven-year tenure. Market analysts suggest that by placing a majority shareholder with deep engineering roots at the forefront, L&F is signaling a commitment to “responsible management” and faster decision-making to meet U.S. Inflation Reduction Act (IRA) requirements.
The company plans to utilize its R&D facilities to lower production costs for LFP, aiming for a price point competitive with Chinese rivals while maintaining superior quality standards. This shift is critical as global automakers, including Tesla and Volkswagen, increasingly look to LFP for their mass-market models.
