Samsung SDI has signed a supply agreement with the South Korean materials manufacturer L&F. The three-year agreement, beginning next year, is for the procurement of cathode materials for lithium iron phosphate batteries. According to Samsung SDI, the contract is valued at approximately 1.6 trillion KRW (about 1.07 billion USD). The agreement includes an option to extend it for an additional three years.
The materials are intended for use in energy storage systems. Production will take place in the U.S. state of Indiana, where Samsung SDI operates the StarPlus Energy joint venture with Stellantis. There, existing production lines are being partially converted from electric vehicle batteries to energy storage system (ESS) applications. Mass production of LFP and NCA batteries is planned to start in the fourth quarter of this year.
Focus on Supply Chain Diversity
This agreement is part of a strategic realignment of supply chains. Historically, the battery industry has been heavily dependent on Chinese suppliers for LFP cathode material. Meanwhile, the U.S. is tightening regulatory requirements for products with ties to China, including regulations targeting so-called “prohibited foreign entities.”
According to Samsung SDI’s own statements, the company aims to reduce these dependencies. Its collaboration with a domestic partner is presented as a step toward stabilizing the supply of materials. In August of last year, L&F announced investments in LFP cathode production and is currently increasing capacity to 60,000 tons per year.
Meanwhile, Samsung SDI is expanding its activities in the North American energy storage market. At the end of last year, Samsung SDI signed a supply contract worth approximately 2 trillion KRW with a U.S. energy company. In mid-March, this was followed by another order worth around 1.5 trillion KRW.
Source:
https://www.samsungsdi.com/sdi-now/sdi-news/4822.html?pageIndex=1&pagesize=15&idx=4822
