Samsung SDI lands $1 bil. ESS battery deal in US

Samsung SDI’s U.S.-produced batteries for energy storage systems / Courtesy of Samsung SDI

Samsung SDI said Monday it has secured another large-scale contract to supply energy storage system (ESS) batteries in the United States, accelerating its expansion in the fast-growing global ESS market.

The Korean battery maker said its Michigan-based subsidiary, Samsung SDI America, recently signed a 1.5 trillion won ($1 billion) deal to supply ESS batteries in phases to a U.S. energy company over four years through 2029. The company did not disclose the name of the customer under the agreement.

The batteries will be produced at StarPlus Energy’s plant in Indiana, a joint venture between Samsung SDI and automaker Stellantis.

Initial shipments will consist of nickel-cobalt-aluminum batteries, with supplies later expanding to lithium iron phosphate (LFP) batteries.

The latest contract highlights Samsung SDI’s technological competitiveness in both NCA and LFP battery technologies in the global market, the company said.

Samsung SDI has been strengthening its presence in the U.S., where demand for ESS is rapidly increasing alongside the expansion of renewable energy and artificial intelligence infrastructure.

Last December, the company signed a deal worth more than 2 trillion won to supply LFP ESS cells to a U.S. energy infrastructure firm, further bolstering its foothold in the market.

Samsung SDI said it is currently in talks with multiple global customers to supply batteries and expects additional contracts in the near future.

Industry observers say the recent series of large-scale deals — backed by Samsung SDI’s prismatic battery technology, known as PrismStack — could strengthen the company’s position in an ongoing government-led bidding process to supply ESS batteries to Korea’s state-run power companies.

Samsung SDI’s prismatic batteries are already widely recognized among U.S. energy firms for their durability advantages over pouch-type batteries, as well as their fire-safety technologies and proven reliability. The company is also the only non-Chinese supplier of prismatic ESS batteries in North America, industry sources said.

“The recent series of orders confirms Samsung SDI’s technological competitiveness and credibility in the global ESS market,” a Samsung SDI official said.