Samsung SDI has announced a landmark agreement worth more than KRW 2 trillion ($1.5bn) to supply prismatic lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in the United States.
The deal, signed by its Michigan-based subsidiary Samsung SDI America, covers a three-year supply period beginning in 2027, with production set at the company’s Indiana facility.
This marks a strategic expansion for Samsung SDI, traditionally focused on nickel cobalt aluminium (NCA) batteries, as it pivots towards LFP technology to meet rising demand in the ESS sector. The company has already reconfigured some electric vehicle battery lines to ESS production, to meet local demand.
Central to the offering is the Samsung Battery Box (SBB) 2.0, a 20ft containerised ESS solution equipped with prismatic LFP cells. Building on the first edition launched in 2023 with NCA chemistry, SBB 2.0 integrates multiple racks in a single container, enhancing portability and ease of installation. The prismatic format, reinforced with aluminium casing, vents and fuses, offers superior durability and safety compared to pouch-type cells.
Samsung SDI’s proprietary No Thermal Propagation (No TP) technology further strengthens safety by preventing heat spread between cells. Industry observers highlight that the company’s advanced safety features and non-Chinese manufacturing base were decisive factors in securing this contract.
With US ESS demand forecast to more than double from 59GWh in 2025 to 142GWh by 2030, Samsung SDI is positioning itself to capture growth in both renewables and AI-driven energy markets.
