South Korean electric vehicle (EV) battery components manufacturer L&F signed a preliminary agreement with Japan’s Mitsubishi Chemical to jointly develop anodes for new batteries to strengthen the two companies' roles in the global battery supply chain.

L&F, based in Daegu, is a significant cathode manufacturer which earlier this year signed a US$2.9bn deal to supply high nickel cathode materials to Tesla.

Mitsubishi Chemical is a major supplier of battery anode and electrolyte materials. Its proprietary anode technology helps prevent natural graphite particle swelling, which results in battery degradation and reduced life cycle.

The two companies were expected to focus on the development of natural graphite based anodes that can offer similar stability to the more expensive synthetic graphite based anodes.

According to local reports, L&F plans to strengthen its battery anode business as part of a long term plan to expand its overall materials business which is currently centred mainly around cathodes.

The two companies will also review plans to jointly build an anode manufacturing plant in South Korea this year in view of this new agreement.