Samsung SDI is reportedly discussing a plan to supply batteries for energy storage systems (ESS·Energy Storage System) to Tesla.
According to the industry on the 3rd, Samsung SDI is discussing a supply contract with Tesla for ESS batteries. In North America, surging power demand driven by the artificial intelligence (AI·Artificial Intelligence) boom has increased renewable power generation and, in turn, ESS demand, but as the United States imposed high tariffs on Chinese batteries, Tesla turned its attention to non-Chinese batteries with plants in the United States.
Samsung SDI is operating a joint plant with U.S. automaker Stellantis in Kokomo, Indiana. If the supply of ESS batteries to Tesla is finalized, Samsung SDI is expected to convert part of the joint plant with Stellantis for ESS.
At its third-quarter earnings conference call on the 28th of last month, Samsung SDI said, "We are converting the electric vehicle line in the joint plant with Stellantis for ESS," and added, "The nickel·cobalt·aluminum (NCA)-based ESS line has already begun operation, and the lithium iron phosphate (LFP)-based ESS lines are aiming to begin operation from the fourth quarter next year. Through this, by around the end of next year, we will expand ESS production capacity to an annual 30 gigawatt-hours (GWh)."
However, a Samsung SDI official said, "We are in discussions with Tesla, but nothing has been decided."