The company to receive 1.6 trillion worth of cathode materials over three years starting next year with an option to extend supply for an additional three years
Cathode materials to manufacture ESS batteries at StarPlus Energy
Securing a domestic supply of key materials to build a stronger competitive edge
SAMSUNG SDI has secured a key supply agreement for battery materials as it moves to strengthen its presence in the North American energy storage system market while diversifying its supply chain away from China.
The company announced today that it has signed a mid- to long-term supply agreement with L&F, a leading Korean battery materials manufacturer, for cathode materials used in lithium iron phosphate (LFP) batteries.
Under the agreement, SAMSUNG SDI will receive cathode materials worth approximately KRW 1.6 trillion over three years starting next year. The materials will be used to produce LFP batteries for ESS applications. The contract also includes an option to extend supply for an additional three years.
SAMSUNG SDI plans to use the LFP cathode materials supplied by L&F to manufacture ESS batteries at StarPlus Energy (SPE), its joint venture with Stellantis located in Indiana, U.S.
SPE has been gradually converting part of its production lines from electric vehicle batteries to ESS batteries since the fourth quarter of last year. Beginning in the fourth quarter of this year, the facility is expected to mass-produce LFP batteries alongside its existing high-nickel NCA batteries.
As Korea’s sole manufacturer of prismatic batteries, SAMSUNG SDI expects the agreement with L&F to help establish a stable domestic materials supply chain while further strengthening its competitive edge in the North American ESS market.
L&F previously announced a new investment in LFP cathode materials in August last year, becoming the first company outside China to do so, and is currently building production capacity of 60,000 tons per year.
While the global battery industry has traditionally relied heavily on Chinese suppliers for LFP cathode materials, tightening regulations in the United States on products manufactured in China, including rules related to Prohibited Foreign Entities (PFE), have made supply chain diversification an increasingly important priority.
Against this backdrop, SAMSUNG SDI’s move to secure a domestic supply of key materials is widely seen as solidifying its competitive edge.
The agreement also comes as SAMSUNG SDI continues to expand its footprint in the North American ESS market through a series of major supply contracts. Late last year, the company signed a contract worth approximately KRW 2 trillion to supply LFP batteries for ESS to a major U.S. energy developer and operator. On March 16, it also announced another ESS battery supply deal worth KRW 1.5 trillion with a U.S. energy company.
The company said the deals reflect recognition of the quality of its prismatic batteries, which incorporate a proprietary stacking process along with in‑house safety technologies such as No Thermal Propagation (No TP) and Enhanced Direct Injection (EDI) to prevent thermal spread and enhance overall safety.
Building on more than 30 years of accumulated expertise, SAMSUNG SDI recently introduced its differentiated prismatic battery technology under the name PrismStack at InterBattery 2026.
“In response to growing demand for supply chains that are less dependent on China, we proactively signed a supply agreement with a domestic materials partner,” said a company official. “Through this partnership, we expect to further strengthen our competitiveness in the North American market and additional business opportunities.”
