Samsung SDI clinches US battery deal worth over $1.4 billion
The South Korean company’s Michigan-based subsidiary Samsung SDI America recently inked a deal with a US customer to supply LFP cells for ESS over three years starting from 2027.
Samsung SDI has announced that the South Korean battery maker will start supplying prismatic lithium iron phosphate (LFP) batteries for installation of energy storage systems in the United States.
The company said its Michigan-based subsidiary Samsung SDI America recently inked a deal with a US customer to supply LFP cells for ESS over three years starting from 2027. The value of this contract is well in excess of KRW 2 trillion (USD 1.4 billion).
Under this contract, the batteries will be manufactured at Samsung SDI’s manufacturing facility located in the US. The battery maker has been shifting some of production lines for electric vehicles to lines for ESS batteries in order to meet local demand, according to a media release.
Samsung SDI’s prismatic LFP cells for ESS are packed in a 20-foot container, named as Samsung Battery Box (SBB) 2.0, an all-in-one ESS solution that incorporates a number of battery racks in a single container for greater portability and user convenience in terms of installation. SAMSUNG SDI launched the first edition of SBB with its flagship NCA cells in 2023.
Samsung SDI says its prismatic LFP cells are more resistant to external shocks due to the aluminum casing with safety design features like vents and fuses.
Equipped with Samsung SDI’s prismatic cells, SBB features proprietary No Thermal Propagation (No TP) technology, preventing heat from spreading to adjacent cells by placing thermal insulation materials between cells and measuring the temperature of a specific cell in when it rises through an exclusive prediction program, the media release said.
“It is a significant opportunity for Samsung SDI to expand into the US ESS market with the first long-term contract for LFP supply,” said a Samsung SDI official. “Through the first supply of SBB 2.0 for ESS installation in the US, Samsung SDI will start providing US customers with ESS batteries to meet their needs not only for high-performance but also for enhanced safety and price competitiveness, enabling them to stabilize power supplies in the era of renewable energy and AI.”