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Photo: L&F |
[Alpha Biz= Kim Jisun] A company that signed a KRW 9 trillion cathode materials supply agreement with L&F is reportedly on the verge of bankruptcy, raising concerns over the future of the deal.
L&F disclosed on March 17 that its contract counterparty has filed for bankruptcy and is currently undergoing acquisition proceedings. “We are in ongoing discussions with the court-appointed administrator regarding contract fulfillment and the recovery of receivables,” the company said in a regulatory filing.
The contract, valued at KRW 9.2383 trillion, covers the supply of high-nickel cathode materials from January 2025 through December 2030. The counterparty is widely believed to be Northvolt, which filed for bankruptcy protection in the United States in November 2024 and in Sweden in March 2025.
L&F noted that contractual rights and obligations are expected to be transferred once a new acquirer is finalized. However, the company cautioned that “material changes to the contract, including the contract value, are anticipated,” urging investors to exercise caution.
The development adds to recent challenges for L&F. In December last year, the company also announced the cancellation of a KRW 3.83 trillion supply agreement with Tesla originally signed in 2023.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
