Samsung SDI has secured a key supply agreement for battery materials as it moves to strengthen its presence in the North American energy storage system market.
The company announced today that it has signed a mid- to long-term supply agreement with L&F, a leading Korean battery materials manufacturer, for cathode materials used in lithium iron phosphate (LFP) batteries.
Under the agreement, Samsung SDI will receive cathode materials worth approximately KRW 1.6 trillion over three years starting next year. The materials will be used to produce LFP batteries for ESS applications. The contract also includes an option to extend supply for an additional three years.
Samsung SDI plans to use the LFP cathode materials supplied by L&F to manufacture ESS batteries at StarPlus Energy (SPE), its joint venture with Stellantis located in Indiana, U.S.
SPE has been gradually converting part of its production lines from electric vehicle batteries to ESS batteries since the fourth quarter of last year. Beginning in the fourth quarter of this year, the facility is expected to mass-produce LFP batteries alongside its existing high-nickel NCA batteries.
As Korea’s sole manufacturer of prismatic batteries, Samsung SDI expects the agreement with L&F to help establish a stable domestic materials supply chain while further strengthening its competitive edge in the North American ESS market.
L&F previously announced a new investment in LFP cathode materials in August last year, becoming the first company outside China to do so, and is currently building production capacity of 60,000 tons per year.
