Samsung SDI announced on Monday that its U.S. subsidiary, Samsung SDI America, has inked a 1.5 trillion KRW (about 1 billion USD) contract to supply batteries for Energy Storage Systems (ESS) to a major U.S. energy company. The supply will be phased over four years, starting this year and continuing through 2029.
The batteries for this contract will be manufactured at the StarPlus Energy plant in Indiana, a joint venture between Samsung SDI and Stellantis. By supplying both nickel-cobalt-aluminum (NCA) and lithium iron phosphate (LFP) batteries sequentially, Samsung SDI has proven its global technological prowess not only in its traditional products but also in the LFP battery sector.
Samsung SDI is bolstering its position in the U.S. market, where ESS demand is surging due to the expansion of renewable energy projects and the rapid growth of the artificial intelligence (AI) industry.
This latest deal follows a contract signed late last year with a U.S. energy infrastructure firm for LFP batteries worth over 2 trillion KRW (about 1.3 billion USD). These consecutive large-scale orders have significantly strengthened Samsung SDI’s foothold in the U.S. ESS market.
The company is currently in talks with several global customers for additional supply contracts, with some expected to yield tangible results in the near future.
Samsung SDI’s string of ESS battery supply contracts, based on its highly safe prismatic technology, is expected to boost its competitiveness in future bids for both domestic ESS central contracts and global orders.
Notably, Samsung SDI stands as the sole non-Chinese manufacturer of prismatic ESS batteries in North America. These prismatic batteries are renowned for their superior durability compared to pouch-type alternatives.
A Samsung SDI spokesperson stated that this recent series of orders validates the technological capabilities and reliability in the global ESS market. It will continue to meet diverse ESS demands, tailoring the approach to the specific project characteristics and performance requirements of the global clientele.