Samsung SDI and L&F Sign LFP Cathode Supply Deal Worth KRW 1.6 Trillion for ESS Batteries
Samsung SDI has signed a three-year deal with Korean battery materials maker L&F to supply LFP cathode materials worth approximately KRW 1.6 trillion, aiming to diversify its supply chain away from China for its North A…
- KRW 1.6 trillion
- 3 years (option to extend 3 more)
- 60,000 tons/year
What Happened
Samsung SDI announced it has signed a mid- to long-term supply agreement with Korean battery materials manufacturer L&F for LFP cathode materials. Under the deal, Samsung SDI will receive materials worth approximately KRW 1.6 trillion over three years starting next year, with an option to extend for another three years. The materials will be used to produce LFP batteries for energy storage systems at its StarPlus Energy joint venture with Stellantis in Indiana, U.S. This move helps Samsung SDI secure a domestic supply of key materials and reduce dependence on Chinese suppliers amid tightening U.S. regulations.
L&F announces investment in LFP cathode production, becoming first non-Chinese company to do so.
Samsung SDI signs ~KRW 2 trillion ESS battery supply contract with a major U.S. energy developer.
StarPlus Energy begins converting some EV battery lines to ESS battery production.
Samsung SDI announces another ESS battery supply deal worth KRW 1.5 trillion with a U.S. energy company.
Samsung SDI signs LFP cathode supply agreement with L&F.
“"In response to growing demand for supply chains that are less dependent on China, we proactively signed a supply agreement with a domestic materials partner. Through this partnership, we expect to further strengthen our competitiveness in the North American market and additional business opportunities."”
60,000tons per year
First non-Chinese company to invest in LFP cathode materials.
Why this matters
This deal helps Samsung SDI reduce reliance on Chinese suppliers for LFP cathode materials, strengthening its supply chain for energy storage batteries in North America, where regulations are tightening on Chinese-made components.
Terms in This Story
- LFP
- Lithium iron phosphate battery, a type of lithium-ion battery known for safety and long life.
- ESS
- Energy storage system, used to store electricity for later use, often in grid or renewable applications.
- prismatic battery
- A battery cell with a rectangular shape, often used in EVs and ESS for efficient packing.
- cathode material
- The positive electrode material in a battery that determines its chemistry and performance.
Summarised from the linked release; details can be imperfect — always verify against the original source.