Samsung SDI has signed a big deal with L&F Co. to buy cathode materials worth 1.6 trillion won. These materials are used to make lithium iron phosphate (LFP) batteries, which are widely used in energy storage systems (ESS).

The deal will run for three years starting next year. There is also an option to continue it for another three years. This helps Samsung SDI make sure it has enough materials for making batteries in the future.

The batteries will be made at StarPlus Energy, a factory run by Samsung SDI and Stellantis. The factory is in Indiana, USA. Right now, the plant is changing its production lines to focus more on energy storage batteries. Out of four lines, three are being converted for this purpose.

Last October, the factory started running one line that makes a different type of battery called NCA. Now, it plans to start large-scale production of LFP batteries in the fourth quarter of this year.

At the same time, L&F is building new factories to produce these battery materials. The company plans to make up to 60,000 tons every year. The first part, which can produce 30,000 tons, should be ready by April. After testing, full production is expected to begin in the third quarter.

This deal shows that more companies are using LFP batteries because they are safer and cost less. Stay tuned for more information.

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