Samsung SDI Co., the world’s sixth-largest electric vehicle cell maker, has clinched a $726 million deal to supply batteries for energy storage systems (ESS) to NextEra Energy Inc., a major U.S. clean energy company. This contract positions Samsung SDI to regain momentum in the ESS market as it navigates challenges in the electric vehicle sector.
The South Korean battery maker is finalizing negotiations to provide 6.3 gigawatt hours (GWh) of ESS batteries to NextEra Energy. This volume represents about 11.5% of the total ESS capacity in North America last year. The agreement is poised to enhance Samsung SDI’s market presence and attract further deals.
The company plans to supply its Samsung Battery Box (SBB) 1.5 model, featuring high-nickel NCA (nickel-cobalt-aluminum) cells. The SBB 1.5 boasts a 37% increase in energy density compared to its predecessor, crucial as global demand for ESS batteries rises due to the expansion of solar power installations.
Samsung SDI previously led the ESS battery market with a 50% share in 2018 but has since faced stiff competition from Chinese manufacturers. The U.S. government’s plan to increase tariffs on Chinese products from 7.5% to 25% by 2026 is likely to boost demand for Korean ESS products.
The U.S. ESS market is projected to more than double to $18.7 billion by 2030. Samsung SDI plans to install ESS battery production lines at its future U.S. cell plants, with LFP battery manufacturing set to commence in 2026. This move aligns with broader industry trends as other South Korean companies like LG Energy Solution Ltd. pivot to the ESS sector to offset declining EV battery sales.
