LG Energy Solution sourced cathodes from LG Chem for years.

Then Tesla changed its spec.

LG Chem couldn't keep up, but L&F could.

Despite being part of the same group, LGES chose L&F for its Tesla volumes.

Five percentage points of nickel content decided it.

Most see a sourcing decision.

The group loyalty held for decades, but a spec sheet ended it.

LG Chem judged 90% nickel sufficient. However, Tesla required 95%.

L&F has been working on ultra-high nickel content (+90%) since 2019.

LG Chem is catching up now. But L&F had a two-year head start.

Historical relationships are important, but if you can't deliver, the competition will step in.

In a battery market that's always moving and innovating, your current position won't guarantee your future position if you can't keep up.