By: ICN Bureau
Last updated : March 29, 2026 7:43 am
The company has signed a mid- to long-term deal with L&F for cathode materials used in lithium iron phosphate (LFP) batteries
Samsung SDI has landed a major supply agreement to reinforce its position in North America’s energy storage system (ESS) market while cutting reliance on Chinese materials.
The South Korean battery giant announced has signed a mid- to long-term deal 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 approximately KRW 1.6 trillion ($1.2 billion) worth of cathode materials over three years starting next year, with an option to extend the contract for an additional three years. These materials will feed production of LFP batteries for ESS applications.
The company plans to use the LFP cathodes at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana, U.S. SPE has been gradually converting part of its production lines from electric vehicle batteries to ESS batteries since late 2025 and is set to mass-produce LFP batteries alongside high-nickel NCA batteries by the fourth quarter of this year.
As Korea’s sole manufacturer of prismatic batteries, Samsung SDI said the deal will help secure a stable domestic supply chain while strengthening its competitive edge in North America.
L&F, which announced a major investment in LFP cathode materials in August 2025, is building production capacity of 60,000 tons per year and became the first company outside China to make such an investment.
The move comes as U.S. regulations tighten on products made in China, including Prohibited Foreign Entities (PFE) rules, making supply chain diversification a growing priority. Analysts say SAMSUNG SDI’s deal positions it to compete more aggressively in the North American ESS market.
The agreement follows a series of high-value contracts for the company in North America, including a KRW 2 trillion ESS battery deal with a U.S. energy developer late last year and another KRW 1.5 trillion deal announced March 16.
The company noted these deals reflect confidence in its prismatic battery technology, which uses a proprietary stacking process and in-house safety systems such as No Thermal Propagation (No TP) and Enhanced Direct Injection (EDI) to prevent thermal spread and improve safety.
Building on over 30 years of expertise, Samsung SDI recently showcased its PrismStack prismatic battery technology 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.”