Samsung SDI signed a supply contract in the United States for lithium iron phosphate (LFP) batteries for energy storage systems (ESS).
Samsung SDI said on the 10th that its Americas subsidiary, SDI America (SDIA), signed a multi-year contract to supply LFP batteries for ESS with a U.S. energy infrastructure development and operations company.
The contract is worth about 2 trillion won, with supplies to run for about three years starting in 2027.
Samsung SDI has focused on nickel-cobalt-aluminum (NCA) ternary batteries, but it will expand LFP production lines going forward. Under this contract, the products to be supplied will be produced by converting electric-vehicle battery lines at its U.S. plant.
To target the U.S. electric-vehicle market, Samsung SDI is jointly building and operating a prismatic EV battery plant with Stellantis. To respond to changes in local market demand, Samsung SDI is converting some production lines for ESS. It is currently producing NCA batteries for ESS but plans to secure LFP production lines tailored to local demand.
The LFP battery cells that Samsung SDI is supplying this time will be installed in SBB (Samsung Battery Box) 2.0, an integrated ESS battery solution. SBB is an integrated ESS solution that installs batteries and fire safety devices in a 20-foot (ft) container, and SBB 2.0 is the first model to apply prismatic LFP batteries. Samsung SDI is the only non-Chinese prismatic battery manufacturer in the United States.
Samsung SDI said, "This contract is meaningful in that Samsung SDI, which had focused on ternary batteries, is expanding its product portfolio to LFP batteries while continuously broadening global sales channels for prismatic ESS batteries based on differentiated technological competitiveness." It added, "Beyond this order, we are in talks with multiple global customers on supplies of LFP and ternary batteries, so additional contracts are expected in the future."
According to market research firm SNE, U.S. ESS demand is expected to grow more than twofold from 59 GWh in 2025 to 142 GWh in 2030. In particular, preferences are rising for LFP materials and prismatic form factors in terms of cost-effectiveness and safety.