SAMSUNG SDI Signs LFP Cathode Material Supply Agreement with L&F for US ESS Growth

Samsung SDI has signed a three-year supply agreement with L&F, a South Korean battery materials manufacturer, to secure cathodes for lithium iron phosphate (LFP) batteries as it accelerates its expansion in the North American energy storage system (ESS) market. The contract, effective from 2027, covers approximately 1.6 trillion won in LFP cathode materials, with an option to extend the partnership for another three years.

The materials will be used at StarPlus Energy’s facility in Indiana—a joint venture between Samsung SDI and Stellantis—to produce ESS batteries for commercial and utility-scale applications. The collaboration is aimed at strengthening local sourcing capabilities in response to evolving U.S. regulations designed to reduce reliance on China-based supply chains for critical battery components.

In a statement, Samsung SDI noted that diversifying its supplier base within South Korea is part of its broader strategy to address stricter U.S. rules concerning products manufactured in China. The move is expected to enhance supply chain stability, reinforce the company’s competitive positioning in North America, and meet the rising demand for domestically sourced battery systems.

Through its partnership with L&F, Samsung SDI aims to ensure a stable supply of LFP cathode materials—a critical component for stationary ESS applications and the rapidly growing grid-scale storage sector. The collaboration also reflects the increasing importance of LFP technology, which is valued for its cost efficiency, thermal stability, and safety advantages over other battery chemistries.

As demand for energy storage solutions continues to rise across the United States, Samsung SDI’s strategy demonstrates its commitment to aligning with regional regulatory requirements while addressing the long-term need for diversified supply chains independent of China. The agreement is expected to open up new business opportunities and support sustained growth in the North American ESS market.