Samsung SDI has entered into a three-year supply agreement with Korean battery material producer L&F to secure cathode materials for lithium iron phosphate (LFP) batteries as it expands its North American energy storage system (ESS) footprint. Under the contract, which begins in 2027, Samsung SDI will acquire approximately 1.6 trillion won worth of LFP cathode materials, with an option to extend the arrangement for an additional three years.
These materials will be used at StarPlus Energy’s Indiana facility, a joint venture between Samsung SDI and Stellantis, to produce ESS batteries for commercial and utility-scale applications. The partnership is designed to enhance local sourcing in response to evolving U.S. regulations aimed at reducing dependence on China-based supply chains for critical battery components.
In a company statement, Samsung SDI emphasized that diversifying its supplier base within Korea aligns with broader efforts to address stricter U.S. rules on products manufactured in China. The move is expected to improve supply chain resilience, strengthen Samsung SDI’s competitive position in North America, and support the growing demand for domestically sourced battery systems.
By collaborating with L&F, Samsung SDI is seeking to secure a reliable supply of LFP cathode materials—a key element in stationary ESS and emerging grid-scale storage markets. The partnership also underscores the growing importance of LFP technology, valued for its cost-effectiveness, thermal stability, and safety advantages over alternative chemistries.
With demand for energy storage solutions rising across the United States, Samsung SDI’s strategy highlights the company’s commitment to meeting regional regulatory requirements while addressing the long-term need for diversified, China-independent supply chains. The agreement is anticipated to create additional business opportunities and support the continued growth of the North American ESS market.
Source: Korea JoongAng Daily
