Samsung SDI secures $1.2 billion LFP supply deal with L&F to strengthen US battery production and reduce China dependence.
Samsung SDI has secured a significant $1.2 billion supply agreement aimed at strengthening its footprint in the North American energy storage system (ESS) market while reducing dependence on Chinese-sourced materials. The South Korean battery manufacturer has entered into a mid- to long-term partnership with L&F, a prominent domestic supplier of battery materials, to procure cathode components for lithium iron phosphate (LFP) batteries.
Under the terms of the agreement, Samsung SDI will receive cathode materials worth approximately KRW 1.6 trillion (around $1.2 billion) over a three-year period starting next year. The contract also includes an option to extend the supply arrangement for an additional three years, ensuring long-term stability in material sourcing. These cathodes will primarily support the production of LFP batteries used in ESS applications, a segment witnessing rapid growth globally.
The company plans to deploy these materials at StarPlus Energy (SPE), its joint venture with Stellantis located in Indiana, United States. SPE has already begun transitioning part of its manufacturing capacity from electric vehicle (EV) batteries to ESS batteries since late 2025. By the fourth quarter of this year, the facility is expected to simultaneously mass-produce LFP batteries alongside high-nickel nickel-cobalt-aluminum (NCA) batteries, marking a strategic diversification of its product portfolio.
Samsung SDI, recognized as Korea’s only producer of prismatic batteries, believes this agreement will help establish a more resilient domestic supply chain while enhancing its competitiveness in North America. The deal also aligns with broader industry efforts to localize supply chains amid tightening U.S. regulations on Chinese-made products, including rules targeting Prohibited Foreign Entities (PFE).
Meanwhile, L&F has been actively expanding its capabilities in the LFP segment. In August 2025, the company announced a major investment to build a production capacity of 60,000 tons per year, becoming the first non-Chinese firm to make such a large-scale commitment in LFP cathode materials.
This latest agreement adds to a series of high-value contracts secured by Samsung SDI in North America. These include a KRW 2 trillion ESS battery supply deal signed with a U.S. energy developer last year, followed by another KRW 1.5 trillion agreement announced in mid-March. Collectively, these deals underscore growing confidence in the company’s prismatic battery technology.
Samsung SDI attributes its competitive edge to proprietary innovations such as its stacking process and advanced safety mechanisms, including No Thermal Propagation (No TP) and Enhanced Direct Injection (EDI), which are designed to prevent heat-related risks. The company recently highlighted its PrismStack prismatic battery technology at InterBattery 2026, reinforcing its technological leadership.
A company representative noted that the partnership with a domestic supplier reflects a proactive response to increasing demand for supply chains less reliant on China, while also opening new growth opportunities in North America.
