Samsung SDI Co. is negotiating its first substantial battery supply contract with Tesla Inc., according to the Korea Economic Daily. The agreement, estimated at more than ₩3 trillion ($2.1 billion) over three years, would provide cells for Tesla’s energy storage products rather than electric vehicles.
The Korean newspaper cited unnamed battery industry sources. Samsung SDI denied reaching a final agreement, stating no decision has been made. Tesla declined to comment.
The proposed arrangement would supply batteries for Tesla’s Megapack utility-scale systems and residential Powerwall units. Samsung SDI reportedly plans to convert portions of its Indiana factory—a joint venture with Stellantis NV—to produce energy storage cells, targeting 10 gigawatt-hours annually.
Tesla has relied almost exclusively on Chinese manufacturers CATL and BYD for storage batteries. The company recently signaled interest in diversifying suppliers following tariffs on Chinese goods. LG Energy Solution Ltd. secured a similar deal with Tesla earlier this year for lithium-iron-phosphate batteries.
Tesla’s energy division has outpaced its automotive business in recent quarters, with deployment growth exceeding vehicle deliveries. The segment faces production constraints tied to battery supply rather than customer demand, creating opportunities for suppliers like Samsung SDI to enter a market dominated by Chinese competitors.
