Samsung SDI plans to begin production of lithium iron phosphate (LFP) battery cells in the United States in the third quarter of 2026, the company disclosed in its second-quarter financial and operational update. The announcement accompanies Samsung SDI’s return to operating profit for the first time in seven quarters.
For the April-to-June period, Samsung SDI reported revenue of KRW 3.77 trillion (US$ 2.59 billion), up 18.5 percent year-over-year and 5.4 percent quarter-on-quarter. Operating profit reached KRW 203.8 billion, marking the first profitable quarter since Q3 2024. Net profit was KRW 471.6 billion, a 740.5 percent increase from the prior quarter, ahead of the company’s earlier guidance.
Revenue from the battery division rose 18.8 percent year-over-year to KRW 3.52 trillion, with operating profit of KRW 159.3 billion. Growth was driven by strong sales of high-power batteries for uninterruptible power supply (UPS) systems, battery backup units (BBUs), power tools, and European EV markets. Samsung SDI cited robust demand from AI data centers and utility-scale battery energy storage systems (BESS), along with improved product mix, advanced manufacturing production credits, and favorable tariff effects as key profitability factors.
The planned US production lines will supply cells for stationary storage and two complete BESS solutions under the Samsung Battery Box (SBB) portfolio. SBB 2.0 features LFP cells housed in a 20-foot container, while SBB 1.7 uses nickel cobalt aluminum oxide (NCA) cells. Local manufacturing will qualify Samsung SDI for production tax credits, and customers will be eligible for investment tax credits with domestic content bonuses. Changes in US incentives have led Samsung SDI and other suppliers to repurpose EV cell lines for BESS applications.
Samsung SDI aims to reach 30 GWh of annual BESS cell capacity in the US by end-2026. The US prismatic LFP line is completing quality validation, with mass production slated to start in October and initial SBB 2.0 deliveries expected before year-end. The company has secured a non-foreign entities of concern (FEOC) supply chain for LFP cathode materials through partnerships with Korean and US suppliers.
Order intake for BESS products remains strong through 2029, and demand is forecast to exceed capacity by 2028. Samsung SDI is reviewing options for further capacity expansion. It has also signed long-term supply agreements for LFP and NCA cells with US customers, including production at the StarPlus Energy plant in Indiana, a joint venture with Stellantis. The company is additionally developing sodium-ion batteries for data center and large-scale storage applications.
Samsung SDI emphasized that, beyond AI data centers, structural growth in the US energy storage market will be supported by ongoing expansion of solar and wind generation, rising electricity demand, and grid stability initiatives.
Source: IndexBox (https://www.indexbox.io/blog/samsung-sdi-to-start-us-lfp-battery-cell-production-in-q3-2026/)
