Samsung SDI's March 2026 announcement frames the L&F agreement as a "mid- to long-term LFP cathode supply deal" worth "approximately KRW 1.6 trillion over three years starting next year." The pricing mechanism, volume flexibility, and conditionality are all absent. Read cold, it sounds like locked supply for StarPlus ESS production.
L&F's same-day KRX filing discloses what the press release does not. The KRW 1.6T is a reference value calculated from a recent selling price applied to a 3-year confirmed volume. That confirmed volume can move ±25% annually. The product price is indexed to raw-material fluctuations. And if the parties cannot agree on price for a given period, either side can suspend all or part of supply.
FX exposure, raw-material indexing, and volume adjustment all compound against the headline number. The filing itself notes the USD equivalent at KRW 1,494.90. On volume flex alone, the actual contract value could range from roughly KRW 1.2T to KRW 2.0T before any deliveries begin.
The 3-year extension option requires mutual consent and is unpriced. L&F's 60,000 t/y LFP cathode capacity is still under construction per Samsung SDI's own language. Neither document discloses MACR terms, per-kWh cathode pricing, or yield expectations. This is a framework agreement with a specific counterparty and a defined period. Anyone citing it as secured supply should understand the contractual distance between those two things.
What the KRX filing adds that the press release omits:
Price mechanism: Indexed to raw-material price changes, not fixed. KRW 1.6T is a snapshot, not a commitment.
Volume flex: ±25% annual adjustment on confirmed volume. Samsung SDI can legally reduce offtake by a quarter per year.
Suspension clause: If parties fail to agree on product price, supply of all or part of volume can be suspended. Bilateral escape, not take-or-pay.
Extension terms: 3-year option to 2032 requires mutual consent; unpriced; excluded from disclosed contract amount.
Delivery entity: L&F or its subsidiaries, not necessarily L&F directly.
FX exposure: Filing states USD 1,074,800,000 at KRW 1,494.90/USD; "final contract amount may change depending on future exchange rates."
Revenue concentration: Contract = 84.23% of L&F's 2024 consolidated revenue. L&F is substantially exposed to StarPlus execution.
Monitoring trail: L&F will report contract execution progress in semi-annual and annual KRX filings. Samsung SDI has no equivalent disclosure obligation.