Samsung SDI said Tuesday that it signed a 1.6 trillion won ($1.1 billion) cathode supply deal with L&F, strengthening its position in the North American energy storage system market through a battery materials supply chain outside China.
Under the agreement, Samsung SDI will source cathode materials from Daegu-based battery materials supplier L&F for its cost-competitive lithium iron phosphate batteries used in energy storage systems. The agreement will run for three years from 2027, with an option to extend the supply for an additional three years.
The materials will be used at StarPlus Energy, Samsung SDI’s joint venture with Stellantis in Indiana, for ESS battery production. The facility has been shifting part of its lines from electric vehicles to ESS since late last year. It plans to begin mass production of LFP batteries alongside its premium, high-nickel batteries in the fourth quarter of this year.
The deal is expected to secure a stable domestic supply chain for key materials while strengthening Samsung SDI’s competitiveness in the North American ESS market. With global LFP cathode supply heavily concentrated in China, the US has been tightening regulations to promote supply chain diversification.
Last year, for the first time among non-Chinese companies, L&F invested in LFP cathode production and is building an annual capacity of 60,000 metric tons in Daegu.
Industry insiders say the agreement is significant as Samsung SDI accelerates its push into the North American ESS market, securing a series of supply deals, including contracts worth a combined 3.5 trillion won with two US energy firms.
Leveraging fire safety features such as No Thermal Propagation and Enhanced Direct Injection technologies, the company recently rebranded its ESS battery as “PrismStack,” highlighting its prismatic design that enhances energy density and safety.
A Samsung SDI official stated, “The agreement reflects the company’s proactive efforts to meet growing demand for non-China supply chains,” adding that it is expected to strengthen its competitiveness and create new business opportunities in North America.
hyejin2@heraldcorp.com
