Samsung SDI landed a contract valued at more than ₩2 trillion ($1.36 billion) to supply lithium iron phosphate batteries to an undisclosed U.S. energy infrastructure company, marking the firm’s first large-scale foray into a market segment where Chinese manufacturers hold commanding positions.
The three-year agreement, announced Wednesday, will see Samsung SDI’s American subsidiary deliver its Samsung Battery Box 2.0 starting in 2027. The containerized system represents the company’s initial LFP product, a departure from the nickel-cobalt-aluminum chemistry Samsung SDI has historically favored.
The timing reflects broader shifts across South Korea’s battery industry. LG Energy Solution and SK On have similarly announced plans to manufacture LFP cells, driven by slower electric vehicle sales and growing demand for grid-scale energy storage. Chinese producers controlled roughly 85% of the global ESS market in 2023, according to SNE Research, while Samsung SDI and LG Energy Solution together accounted for less than 10%.
Samsung SDI will produce cells at its Indiana facility, a joint venture with Stellantis that has been converting EV production lines to accommodate storage applications. The company claims its prismatic cell design offers durability advantages over competing formats.
U.S. ESS demand is projected to reach 142 gigawatt-hours by 2030, more than double current levels, as renewable energy expansion and data center construction accelerate.
