Samsung SDI has secured a contract worth over KRW2tn ($1.53bn) through its American subsidiary to supply lithium iron phosphate (LFP) batteries for energy storage systems (ESS) in North America. The South Korean group will begin deliveries in 2027 for a period of three years.
The batteries will be manufactured at Samsung SDI’s facility in Indiana. The company has already begun converting some of its electric vehicle battery production lines to ESS battery lines to meet increasing local demand.
Strategic positioning in the U.S. ESS market
The contract marks Samsung SDI’s entry into the North American LFP battery market, having historically focused on nickel-cobalt-aluminium (NCA) chemistry. This technological diversification reflects the company’s intent to meet growing needs for energy storage solutions, particularly as renewable energy projects expand and artificial intelligence adoption accelerates.
The prismatic LFP cells will be integrated into the Samsung Battery Box (SBB) 2.0, a 20-foot all-in-one container designed for portability and easy installation. This system consolidates several battery racks into a compact format. Initially launched with NCA cells in 2023, the SBB now incorporates LFP technology.
Proprietary technology and competitive edge
Samsung SDI highlights a proprietary No Thermal Propagation (No TP) technology in its prismatic LFP cells. This system prevents thermal spread between cells using insulating materials and an exclusive heat prediction programme. The design also includes an aluminium casing with safety features such as vents and fuses.
The company states that it has overcome the initial lower energy density of LFP by optimising anode materials and electrode processes. This has enhanced both the cost-efficiency and reliability of its battery modules.
Market context and outlook
According to research firm SNE, U.S. demand for ESS is expected to grow from 59 GWh in 2025 to 142 GWh by 2030. This increase coincides with a rising preference for prismatic LFP batteries, considered safer and more cost-effective than pouch-type formats.
Samsung SDI is currently the only non-Chinese manufacturer of prismatic cells operating in the United States. This unique position may offer a competitive advantage as the company negotiates further contracts with international clients for both LFP and NCA batteries.
A Samsung SDI representative said that this first long-term SBB 2.0 order in the U.S. marks a strategic step to provide American customers with ESS solutions focused on performance, safety, and price competitiveness, aligned with current energy market demands.
