Samsung SDI secures $1 billion four-year ESS battery supply contract with undisclosed US energy company

Samsung SDI's $1 billion contract to supply energy storage system batteries to a US energy company over four years, starting in 2026, demonstrates the company's strategic expansion into the US market. By leveraging its Michigan-based subsidiary, Samsung SDI America, the company will deliver ESS batteries produced at the StarPlus Energy facility in Kokomo, Indiana, a joint venture between Samsung SDI and Stellantis. The initial supplies will feature NCA battery cells before transitioning to LFP cells, indicating a phased approach to technology deployment. This deal structure suggests Samsung SDI is adapting to the US market's evolving energy storage needs. The contract's value, KRW1.5 trillion, underscores Samsung SDI's commitment to the US market. As the company navigates foreign entity of concern restrictions and US-China trade tariffs, this deal showcases its ability to secure large-scale contracts. The fact that Samsung SDI was reportedly negotiating with Tesla in 2025 for a multi-year supply agreement adds context to the company's aggressive pursuit of US energy storage opportunities. Samsung SDI, with 2023 revenue of KRW 22.7 trillion, has established itself as a major player in the lithium-ion battery market, supplying batteries for electric vehicles, energy storage systems, and IT devices. The company's US subsidiary, Samsung SDI America, will be instrumental in delivering the ESS batteries, highlighting the importance of local presence in securing large contracts. The undisclosed US energy company, which has secured a significant supply agreement, will likely benefit from Samsung SDI's expertise in energy storage solutions. As Samsung SDI continues to expand its US operations, it will be interesting to see how this deal impacts the company's overall portfolio and its position in the global energy storage market. With the StarPlus Energy facility in Kokomo, Indiana, serving as a key production hub, Samsung SDI is well-equipped to meet the growing demand for energy storage solutions in the US. The company's ability to negotiate large-scale contracts, such as this $1 billion deal, demonstrates its commercial prowess and adaptability in the US market.