Samsung SDI Secures 10GWh LFP ESS Battery Contract Through 2030

Samsung SDI America has entered into a confidential contract to supply batteries for energy storage systems (ESS), with the identity of the buyer, contract value, and specific terms set to remain undisclosed until January 2030. Industry analysts broadly view the deal as an agreement with Tesla, building upon negotiations initiated last year. Under the arrangement, Samsung SDI is expected to deliver 10 GWh of lithium iron phosphate (LFP) ESS batteries annually over a three-year period starting in 2027, generating roughly 3 trillion won in revenue.

Tesla’s move to secure large-scale energy storage aligns with its wider strategy to mitigate anticipated power shortages—driven largely by the rapid growth of artificial intelligence data centers—and to expand its footprint in renewable energy and grid services. This follows a similar ESS LFP battery supply deal reported in July of last year, when LG Energy Solution signed a three-year contract, also believed to be with Tesla, valued at approximately 6 trillion won. Together, these agreements underscore Tesla’s drive to lock in substantial ESS battery capacity ahead of expected market growth.

The new contract comes shortly after Samsung SDI announced last month that it had secured a 2 trillion won order for ESS LFP batteries from a U.S.-based energy infrastructure company. Back-to-back wins highlight battery makers’ growing emphasis on stationary storage solutions, especially amid a temporary slowdown in electric vehicle demand. While Samsung SDI historically produced nickel-cobalt-aluminum (NCA) batteries for ESS applications, it has been accelerating plans to build out LFP production lines in response to rising market demand. LFP technology now dominates the global ESS sector, accounting for about 80% of the market.

To support this transition, Samsung SDI plans to repurpose electric vehicle battery production lines at its U.S. joint venture plant with Stellantis for ESS battery manufacturing. The company is targeting an annual ESS battery production capacity of 30 GWh in the United States by year’s end. According to BloombergNEF, cumulative ESS installation capacity in the U.S. is forecast to rise sharply from 19 GW in 2023 to 250 GW by 2035, highlighting the significant expansion underway in grid-scale energy storage.