South Korea’s L&F has secured a landmark lithium iron phosphate (LFP) cathode materials contract worth around 1.6 trillion Korean won (about 1.07 billion USD), marking the first large‑scale LFP supply agreement achieved by a non‑Chinese company.
L&F confirmed on the 24th March that it has signed a mid‑ to long‑term supply agreement with Samsung SDI. The deal will see L&F provide confirmed volumes of lithium iron phosphate (LFP) cathode materials for Samsung SDI’s ESS‑focused battery production. The three‑year agreement, beginning in 2027, also includes an option to extend supply for a further three years, giving the company long‑term security as demand for ESS technology accelerates.
Samsung SDI will use the materials at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana. Since late last year, SPE has been shifting part of its output from electric vehicle batteries to ESS units. Mass production of LFP batteries is expected to begin in the fourth quarter of this year, alongside the site’s existing nickel‑cobalt‑aluminium lines.
As Korea’s only manufacturer of prismatic batteries, Samsung SDI sees the partnership as a way to reinforce a stable domestic supply chain while sharpening its competitive edge in the U.S. market.
The agreement is viewed as strategically significant amid global efforts to diversify battery supply chains. L&F began investing in LFP cathode materials in August last year—becoming the first company outside China to do so—and has now finalised this major contract within roughly six months. The firm is building production capacity totalling 60,000 tonnes per year across two phases. Its first 30,000‑tonne facility is due for completion in April and could begin mass production as early as the third quarter following trial runs and customer validation.
With Korean battery manufacturers increasingly converting electric vehicle battery lines for ESS applications to meet rising North American demand, L&F aims to strengthen collaboration and secure a foothold in the expanding LFP market.
L&F’s Chief Financial Officer Ryu Seung‑heon said, “Our company is the first non-Chinese firm capable of producing LFP materials outside of China.” He added, “We are actively exploring supply possibilities not only with South Korean battery companies but also with overseas automakers and global ESS firms, expecting sustained growth. We are planning strategic growth measures, including customer-specific volume allocation and additional production line expansions.”
A Samsung SDI representative said: “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.” They added: “Through this partnership, we expect to further strengthen our competitiveness in the North American market and create additional business opportunities.”
