The investment ceremony took place at ELNFF's headquarters in Daegu, attended by key executives including Heo Je-hong, CEO; Ryu Seung-heon, Chief Financial Officer; and Jang Seong-kyun, Chief Privacy Officer from ELNFF, along with Lee Seong-o, CEO, and Kim Young-man, Vice President from CIS Chemical.
This investment is a follow-up to the memorandum of understanding (MOU) signed in May regarding the recycling of LFP (lithium iron phosphate) and NCM (nickel, cobalt, manganese) materials, aimed at more reliably meeting the recycling demands of their clients.
ELNFF plans to leverage CIS Chemical's recycling expertise to secure stable processing volumes for LFP and NCM materials. By 2027, ELNFF aims to prioritize its capacity for LFP recycling to jointly address the recycling needs of its customers. The companies will also collaborate on the development of high-purity mixed hydroxide (Clean-MHP) to reduce cathode material costs and advance key technologies in LFP recycling and remanufacturing through joint research and development agreements. Additionally, they plan to expand cooperation in national research and development projects.
Through this partnership, ELNFF is expected to significantly increase the use of recycled materials, such as lithium carbonate. CIS Chemical boasts industry-leading recycling technology, achieving a lithium carbonate recovery rate of 98% based on its proprietary processes. The company has also completed technology verification for LFP recycling with major domestic clients.
With limited companies commercializing LFP post-processing in South Korea, ELNFF aims to ensure stable collaboration with CIS Chemical in post-processing operations while enhancing its recycling business for waste cathodes and black mass (BM) through its subsidiary, JH Chemical Industry (JHC).
Furthermore, ELNFF plans to expand synergies at the group level by collaborating with its subsidiary, ELNFF Plus, on the processing of LFP waste cathodes and by partnering with Saeronix for the supply of cathode additives (such as cobalt hydroxide and boric acid).
As the adoption of LFP batteries in the electric vehicle market rapidly increases, the recycling market is entering a significant growth phase. This trend is particularly driven by the European Union's push for mandatory use of recycled materials and the tightening of global environmental regulations, prompting battery material companies to expand their investments in recycling to secure raw materials and stabilize supply chains. ELNFF intends to strengthen its value chain from LFP cathodes to the procurement of recycled materials through this strategic investment, enhancing its future competitiveness.
Heo Je-hong, CEO of ELNFF, stated, "This investment is a strategic decision to proactively secure competitiveness in the battery recycling sector. Through close collaboration with CIS Chemical, we will enhance our supply chain for recycled materials and establish a recycling value chain that can respond proactively to customer demands."
* This article has been translated by AI.
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