Sungeel Hi-Tech can join forces with Top Material for recycled LFP materials

The leading South Korean battery recycling Sungeel Hi-Tech has signed an MOU with the small cathode company Top Material, also from South Korea, to use recycled LFP material to produce new LFP cathode material.

Sungeel Hi-Tech is about to commission a dedicated hydrometallurgical process for LFP batteries in 2026, being one of the first Korean recycler to do so. Top Materials which is fast-growing cathode material company with a production capacity of 1 GWh in its plant in Asan, South Korea.

LFP, the cathode chemistry which increasingly is becoming the choice for several EV producers has almost entirely been manufactured in China, both on cathode and cell level. Several producers are now aiming for cells with LFP. LG Energy Solution will produce LFP in its plant in Arizona and the Norwegian battery startups Morrow and FREYR are both setting up production of LFP cells. However on the material side the options have been extremely few outside of China. The American startup Mitra Chem only recently received funding for a plant in Michigan where the company will produce LFP and LFMP material. The news from South Korea is therefore is welcome for both Korean and western cell makers but also for pre-processors dealing with LFP scrap as Sungeel's process can become an attractive buyer.

An important aspect is IRA as cathode materials made from recycled materials in South Korea will qualify for maximum tax credits for US-made EVs. Sungeel is currently setting up pre-processing in the US through which the companies fully can close the loop.