After I-140 approved, is L1 to H1 transfer dependent on lottery

I am on L1 visa valid till Dec 2022 with extensions.
My firm will file my green card in EB-2 category.

I understand that since getting green card will take longer than my visa expiration, I will need to convert my visa to H1-B.
Will the conversion from L1 to H1-B be dependent on lottery?

Is it possible that even when I-140 is approved, my conversion to H1-B does not take place due to name not appearing in lottery and I would have to leave US after my L1 visa expiration?

Regards

Conversion from L1 to H1B will need lottery

If you are applying for H1B for the first time, then yes, you will need to go through H1B lottery process.

If you had any H1B earlier and did not use the complete H1B 6 year quota, then you can convert your L1 to H1B without going through lottery.

H1B not selected in lottery

I-140 is meant to give you extended stay beyond the quota limits like H1 has 6 years and L1 has 7 years.

If you are trying to convert to H1B, then, you will need to first get H1B approved through lottery. Does not matter if you are doing it after 6 years or before 6 years.
Once you get H1B, you can use your I-140 to keep extending your H1B as long as you want.

You can extend your stay on L1 using approved I-140 beyond the quota of 7 years.

More information:

Thank you Anil for the quick and detailed reply.

Since I have not had H1-B before, I understand from your reply that my conversion from L1 to H1 will be subject to winning the lottery.

If one can stay and work beyond 7 years of L1 visa after I-140 approval, then what are the advantages of trying to get H1-B, as I see people trying to convert their visas to H1-B during the green card process ?

With H1B, you can change employer whenever you want while staying within USA.

You do not have that liberty or option with L1 visa. You are tied to one employer.

As you’ve mentioned about we can extend our stay on L1 using approved I-140 beyond the quota, are you stating about L-1A? What about L-1B? Can I stay on L-1B beyond 5 years using approved I-140?

You will have to convert to H1B to stay beyond L1 max time.