Samsung SDI, L&F ink battery material purchase agreement
Samsung SDI said Tuesday it has signed a purchase deal with L&F, a Korean battery material supplier, as it aims to expand its North American energy storage system (ESS) business amid tighter U.S. rules on China-related supply chains.
Under the agreement signed Monday, Samsung SDI will receive 1.6 trillion won ($1.06 billion) worth of cathode materials used in lithium iron phosphate batteries from L&F over a three-year period, starting in 2027, with an option to extend the deal for an additional three years.
The materials will be used to produce ESS batteries at an Indiana-based plant of StarPlus Energy, a joint venture between Samsung SDI and Stellantis.
Samsung SDI said the move comes as part of efforts to address tighter U.S. regulations on products manufactured in China, which “have made supply chain diversification an increasingly important priority.”
Samsung SDI said in a release,
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,
“Through this partnership, we expect to further strengthen our competitiveness in the North American market and create additional business opportunities.”
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Samsung SDI, L&F ink battery material purchase agreement, source
