SAMSUNG SDI has announced a major contract for its energy storage business, confirming that the South Korean battery maker will supply prismatic lithium iron phosphate (LFP) batteries for energy storage system installations in the United States. The deal was secured through its Michigan-based subsidiary, SAMSUNG SDI America, and covers a three year supply period starting in 2027. The value of the contract exceeds KRW 2 trillion or $1.36 billion. SAMSUNG SDI did not reveal the name of the customer.
Under the agreement, production will take place at SAMSUNG SDI’s U.S. manufacturing facility, where the company is transitioning some electric vehicle battery lines toward ESS-focused LFP production to meet strong local demand. The shift reinforces the company’s long term plan to expand its ESS footprint in the U.S. market.
SAMSUNG SDI will supply its prismatic LFP cells integrated into the Samsung Battery Box 2.0, a 20 foot container based ESS solution that houses multiple battery racks in a single portable unit. The first version of SBB, using NCA cells, was introduced in 2023.
The deal marks a strategic turning point for SAMSUNG SDI, which has historically centered its portfolio on NCA chemistry. By advancing LFP technology through years of R&D, the company has boosted energy density while maximizing safety and cost efficiency using proprietary anode materials and electrode processes. Market analysts say durability advantages of prismatic cells, combined with SAMSUNG SDI’s globally recognized safety technologies, contributed strongly to securing this LFP contract.
The company says its prismatic LFP cells offer superior shock resistance thanks to aluminum casings equipped with vents and fuses. Growing interest in prismatic cells across both EV and ESS markets is driven by rising safety requirements. The SBB platform further enhances safety with No Thermal Propagation technology, which prevents heat transfer between cells through thermal insulation and real time temperature prediction.
SAMSUNG SDI is currently the only non-Chinese manufacturer of prismatic batteries operating in the United States, a position that strengthens its competitive edge as U.S. demand for ESS accelerates. According to SNE Research, U.S. ESS demand is projected to rise from 59 GWh in 2025 to 142 GWh by 2030, driven by rapid renewable energy expansion and increased power needs from AI deployments. LFP chemistry and prismatic form factors are expected to dominate the market due to their safety and cost benefits.
In addition to this new agreement, SAMSUNG SDI is in active discussions with several global customers for additional LFP and NCA battery supply deals. Company officials say the first long term LFP contract in the U.S. provides a strong platform for expanding its ESS presence and supporting customers seeking high performance, safety focused and cost competitive storage solutions in the renewable energy and AI era.
Baburajan Kizhakedath