Key Points
- Samsung SDI signed a $1.36 billion deal to supply batteries to an unnamed U.S. energy company.
- The deal is for LFP batteries to be used in energy storage systems, not electric vehicles.
- The batteries will be manufactured in the U.S. by converting existing production lines.
- The move is a strategic pivot amid the phasing out of U.S. subsidies for EV batteries. Deliveries are scheduled to run for three years, starting in 2027.
South Korea’s Samsung SDI announced on Wednesday that it has signed a deal valued at over $1.36 billion to supply batteries to a major U.S. energy company. The agreement locks in a three-year supply of advanced batteries starting in 2027.
While Samsung did not name its new American partner, it confirmed the deal is for its lithium iron phosphate (LFP) batteries. These batteries are not for electric vehicles but for large-scale energy storage systems that power critical infrastructure such as data centers.
This move highlights a broader strategic shift among South Korean battery makers. As U.S. subsidies for electric vehicle (EV) batteries begin to phase out, companies are smartly pivoting. Samsung plans to make these new batteries by converting some of its existing production lines at its U.S. plant, which it initially built with automaker Stellantis to target the EV market.
By repurposing these factory lines, Samsung can quickly adapt to changing market demands without building entirely new facilities. The company is capitalizing on the growing demand for reliable energy storage in the United States, a market that continues to expand rapidly.
The deal positions Samsung to be a key player in the U.S. energy sector, even as the landscape for government incentives in the auto industry changes.
