Samsung SDI to Supply Over 2 Trillion Won Worth of LFP Batteries for ESS to Major U.S. Energy Company

Supplying for Three Years to a Major Energy Infrastructure Company
Responding to Local Demand by Converting U.S. Plant Production Lines
A Signal for Full-Scale Entry into the LFP Market
Enhanced Competitiveness and Safety of Prismatic Batte

Samsung SDI will supply lithium iron phosphate (LFP) batteries for energy storage systems (ESS) on a large scale to a major U.S. energy company.

Energy storage system (ESS) product equipped with lithium iron phosphate (LFP) battery, 'Samsung Battery Box (SBB) 2.0.' Samsung SDI

On December 10, Samsung SDI announced that its U.S. subsidiary, Samsung SDI America (SDIA), has signed a multi-year contract with a U.S.-based energy infrastructure development and operations company to supply LFP batteries for ESS. The contract is valued at over 2 trillion won and the supply will take place over approximately three years starting in 2027.

The products to be supplied under this contract will be produced by converting lines at Samsung SDI's local factory in the United States. Samsung SDI is already operating a joint prismatic battery plant for electric vehicles with Stellantis to target the U.S. EV market, and is converting some production lines to ESS use in response to changing local market demand. While the company is currently producing NCA (nickel-cobalt-aluminum) batteries for ESS, it also plans to establish LFP production lines to meet local demand.

The LFP battery cells supplied by Samsung SDI will be installed in the Samsung Battery Box (SBB) 2.0, an integrated ESS battery solution. The SBB is a fully integrated ESS solution that incorporates batteries and fire safety devices in a 20-foot container, and SBB 2.0 is the first model to feature prismatic LFP batteries.

This contract is significant in that Samsung SDI, which has primarily focused on ternary batteries, is expanding its product portfolio to include LFP batteries. It also demonstrates the company's commitment to continuously expanding the global market for prismatic batteries for ESS, leveraging its differentiated technological competitiveness. Through ongoing research and development of LFP, Samsung SDI has maximized the advantages of cost-competitive LFP materials, while also improving energy density through differentiated materials and electrode plate processing technologies.

In addition, Samsung SDI is strengthening its position in the U.S. market, where demand for ESS is rapidly increasing due to the expansion of renewable energy development projects and the explosive growth of the artificial intelligence (AI) industry.

Samsung SDI's prismatic batteries feature a robust aluminum can-type exterior structure, making them highly resistant to external shocks. They are also equipped with safety features such as vents and fuses that allow for immediate release of internal heat. Notably, SBB 2.0 incorporates No TP (No Thermal Propagation) technology, which further enhances the safety of prismatic batteries. No TP technology places insulation material between battery cells within a module and uses a thermal propagation performance prediction program to prevent heat from spreading to adjacent cells when the temperature of a specific cell rises.

A Samsung SDI representative stated, "This large-scale, long-term contract for LFP batteries for ESS is significant as it secures a new market for us," adding, "Starting with this contract, we will expand the supply of ESS products to global customers that not only offer outstanding fire safety, but also excel in performance and price competitiveness."

This content was produced with the assistance of AI translation services.