(Bloomberg) — South Korea’s L&F Co. jumped as much as 19% after winning a $2.9 billion order from Tesla Inc. and its affiliates to provide cathode materials, a key component in electric vehicle batteries. .
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The supplier will provide high-nickel cathode materials for use in the automotive, power generation and storage sectors under a contract from next January through December 2025, L&F said in a presentation Tuesday. The materials will be supplied to the US and other regions.
L&F, which also supplies battery makers including LG Energy Solution Ltd., was trading 11.2% higher as of 11:30 a.m. in Seoul. The company’s shares are up 56% this year.
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The deal comes amid rising demand for key ingredients in batteries such as lithium, nickel and cobalt as electric car sales soar. Competition between automakers and battery producers globally to secure reliable partners has also intensified, including as a result of President Joe Biden’s Reduced Inflation Act, which seeks to limit American reliance on Chinese companies. .
(Updates to add details, stock price movement from first paragraph.)
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