Samsung SDI announced on the 24th that it has signed a long-term supply agreement for lithium iron phosphate (LFP) battery cathode materials with L & F, a leading local battery materials company. According to the agreement, within three years from next year, Samsung SDI will purchase cathode materials worth about 1.6 trillion won from L & F for the production of lithium iron phosphate batteries for energy storage systems (ESS). The contract is valid for three years, with an option to extend it for a further three years.

Samsung SDI said it would use this batch of LFP cathode materials purchased from L & F to produce ESS batteries at its Star Plus Energy (SPE) factory in Indiana, USA, a joint venture with Stellantis. It is reported that SPE has gradually shifted some production lines from electric vehicles (EV) to energy storage systems (ESS) since the fourth quarter of last year. The company plans to start mass production of LFP batteries in addition to the existing high nickel NCA (nickel cobalt aluminum) batteries in the fourth quarter of this year.

Samsung SDI said: "Through cooperation with L & F, we are expected to establish a stable local material supply chain, while further consolidating our competitive advantage in the North American ESS market. "L & F invested in the new project in August last year and is currently building a production facility with an annual capacity of 60000 tons.

It is worth noting that Samsung SDI recently won ESS battery orders in the North American market. Following the signing of a LFP battery supply contract worth 2 trillion won with a large US energy development and operation company at the end of last year, the company signed an ESS battery supply contract worth 1.5 trillion won with another US energy professional company on the 16th. Company related people explained: "in the face of the material market supply chain 'de-sinicization' trend, we take the initiative to sign supply agreements with local enterprises. "He further said:" I hope that through this contract, we will further strengthen our competitiveness in the North American market and create more business opportunities.