South Korean battery-materials maker L&F Co.
066970,
signed a $2.91 billion provide contract with Tesla Inc.
TSLA,
L&F stated in a regulatory submitting Tuesday that it will present high-nickel cathode supplies price 3.835 trillion gained to the U.S. electric-vehicle big.
The deal will final for 2 years from Jan. 1, 2024, by way of Dec. 31, 2025, L&F stated.
Shares of L&F, listed within the second-tier Kosdaq market, jumped as a lot as 19% greater to KRW285,000 in morning commerce following the availability contract with Tesla.
Korea Funding & Securities analyst Kim Jung-hwan stated in a notice Tuesday that he expects the deal to assist Tesla proceed to push for its personal battery provide chain.
The deal can be possible to assist L&F, a provider to South Korean EV battery makers, diversify its buyer base globally and get a greater valuation, he stated.
Korea Funding expects L&F’s cathode shipments to extend 46% in 2023, and raised its working revenue forecast by 11%.
The brokerage revised up the inventory’s goal worth by 15% to KRW380,000 and saved a purchase ranking.