Samsung SDI signs mid-to-long-term LFP cathode supply deal with L&F

SEOUL, March 24 (AJP) - Samsung SDI said it has signed a mid-to-long-term supply agreement with domestic battery materials maker L&F to secure lithium iron phosphate (LFP) cathode materials outside of China, as it accelerates its push into the North American energy storage system (ESS) market.

Under the agreement announced Tuesday, Samsung SDI will procure about 1.6 trillion won ($1.06 billlion) worth of LFP cathode materials from L&F over three years beginning next year for use in ESS battery production. The deal also includes an option to extend supply for an additional three years.

Samsung SDI plans to use the cathode materials at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana, United States. SPE has been gradually converting some of its production lines from electric vehicles to ESS since the fourth quarter of last year, and is scheduled to begin mass-producing LFP batteries alongside its existing high-nickel NCA cells from the fourth quarter of this year.

"We have proactively signed a supply agreement with a domestic partner in response to growing demand for China-free sourcing," a Samsung SDI spokesperson said.

"Through this deal, we will further strengthen our competitiveness in the North American market and create more business opportunities."

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