Samsung SDI Signs Battery Supply Contract in U.S.; Estimated to Supply Tesla ESS Batteries

Contract Estimated at Several Trillion Won
Multi-Year ESS LFP Battery Deal Signed Last Month

Samsung SDI announced on January 30 that it has signed a battery supply contract for energy storage systems (ESS) in the United States. Industry sources estimate that the batteries will be supplied to Tesla, with the contract expected to be worth several trillion won.

Aerial view of the Samsung SDI electric vehicle battery factory to be built in Hungary. Samsung SDI

On the same day, Samsung SDI disclosed the details of the battery supply contract signed by its North American subsidiary, Samsung SDI America. The company stated that the contract amount, counterpart, and period would remain undisclosed due to business confidentiality, with the disclosure postponed until January 1, 2030.

Industry observers believe this contract is related to supplying ESS batteries to Tesla. Last November, it was reported that Samsung SDI had agreed to supply Tesla with 10 gigawatt-hours (GWh) of batteries annually over three years.

Although demand for electric vehicles is slowing in North America, Samsung SDI is seeking to expand its portfolio into the ESS market. Last month, its North American subsidiary signed a multi-year contract worth approximately 2 trillion won with a local company specializing in energy infrastructure development and operation, to supply lithium iron phosphate (LFP) batteries for ESS.

While Samsung SDI has primarily produced nickel-cobalt-aluminum (NCA) batteries for ESS applications, it is now securing LFP production lines to meet U.S. demand. Currently, Samsung SDI is known as the only non-Chinese manufacturer of prismatic batteries in the United States, giving it a favorable position in the local market.