Samsung SDI wins over W2tr US ESS battery deal, expands into LFP
South Korean battery-maker Samsung SDI announced Wednesday that its American subsidiary has signed a deal valued at over 2 trillion won ($1.36 billion) to supply lithium iron phosphate, or LFP, batteries to a leading US energy company.
Samsung SDI America has entered into a three-year agreement to deliver LFP batteries for energy storage systems to an unnamed energy infrastructure developer, with shipments set to begin in 2027, the company said in a press release.
The batteries will be produced at Samsung SDI’s US manufacturing site by converting existing production lines, it said.
Samsung SDI is currently building and operating a joint electric vehicle battery plant with Stellantis in Indiana, and has been shifting some capacity to ESS batteries in response to changing market demand.
While the company manufactures nickel-cobalt-aluminum ESS batteries, it plans to add LFP production lines to meet the growing demand.
Samsung SDI said the deal marks a meaningful expansion of its product portfolio beyond its long-standing emphasis on NCA batteries. The company noted that it has improved LFP battery competitiveness through research and development initiatives, while boosting energy density through differentiated materials and electrode-plate processing technologies.
A Samsung SDI official said,
This large-scale, long-term contract for ESS LFP batteries is significant because it secures a new market for us,
“Starting with this deal, we will expand ESS products that offer not only strong fire safety but also performance and price competitiveness for global customers.”
The company added that it is in discussion with multiple global customers on additional supply agreements for both LFP and NCA batteries, generating expectations for further deals in the coming months.
Industry analysts credit Samsung SDI’s latest deal to the advantage of its prismatic cell design, which provides stronger durability than pouch-type cells, along with the company’s established safety features. The structure reminiscent of an aluminum can increases resistance to external shocks, while vents and fuses help dissipate heat in emergency situations.
The LFP cells provided under the new contract will be equipped in Samsung Battery Box 2.0, an integrated ESS solution that combines batteries and fire-safety systems within a standard 20-foot container. SBB 2.0 is the first Samsung SDI model equipped with prismatic LFP batteries.
In addition, Samsung SDI is recognized as the sole non-Chinese prismatic battery manufacturer in the US market, giving the company a strategic advantage for growth in the region.
According to market research firm SNE, US demand for ESS is expected to more than double, reaching 142 gigawatt-hours by 2030, up from 59 gigawatt-hours this year. There is growing preference for LFP materials and prismatic design due to their cost efficiency and safety advantages.
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Samsung SDI wins over W2tr US ESS battery deal, expands into LFP, source
