Samsung SDI’s U.S. unit has secured a supply agreement worth more than 2 trillion won (approximately $1.36 billion) to deliver lithium iron phosphate (LFP) batteries for energy storage systems through 2027.
Announced in a company statement, SDI America signed the three-year contract with an undisclosed U.S. energy infrastructure developer to support its utility-scale storage projects.
Under the agreement, the LFP cells will be manufactured at the Indiana facility operated by Samsung SDI’s first U.S. joint venture with Stellantis. The plant, which began production in December 2024, currently builds nickel-cobalt-aluminum (NCA) batteries for energy storage applications. A second, adjacent facility is under construction and is slated to commence operations in 2027.
A Samsung SDI spokesperson described the deal as “significant,” noting that it opens a new market segment for LFP batteries. “Building on this agreement, the company plans to expand supplies of LFP batteries,” the spokesperson added. LFP chemistries are increasingly chosen for stationary storage due to their lower cost and enhanced safety compared with some other lithium-ion variants.
Samsung SDI also indicated it is in negotiations with multiple global customers for additional orders of both LFP and other battery types. The company has emphasized its intention to diversify its product mix in response to evolving market requirements.
According to data from market research firm SNE, U.S. demand for grid-scale energy storage is expected to more than double by 2030, rising from about 59 gigawatt-hours this year to nearly 142 gigawatt-hours. To meet this growth, Samsung SDI has also entered a partnership with General Motors to build an electric vehicle battery plant in Indiana, with production scheduled to begin in 2027.
These strategic moves underscore Samsung SDI’s efforts to strengthen its footprint in the North American battery market and to capitalize on the accelerating deployment of renewable energy and storage solutions.
Source: Yonhap News Agency
