Samsung SDI Secures Multi-Billion-Dollar U.S. Battery Deal, Realigns Production for Energy Storage Demand

Samsung SDI America, the U.S. arm of Samsung SDI, has secured a significant contract to provide lithium iron phosphate (LFP) batteries for energy-storage applications to an undisclosed American client. The agreement, which is worth more than 2 trillion won (over $1.36 billion), triggered a strong jump in the company’s share price—rising more than 6% during early trading even as the broader KOSPI index dipped slightly.

Deliveries of the prismatic LFP cells are set to begin in 2027 and will continue for three years. The buyer is described only as a company involved in developing and operating energy-infrastructure projects.

Production of the batteries will take place at Samsung SDI’s U.S. facility. To make room for this work, the company has begun converting part of its existing electric-vehicle battery manufacturing capacity to focus on energy-storage products. The shift reflects changing U.S. market conditions, where demand for ESS batteries—used to support facilities such as data centers and other critical infrastructure—has been increasing.

This adjustment in manufacturing strategy aligns with a broader trend among South Korean battery companies, many of which are adapting EV production lines for ESS products in response to recent changes in U.S. subsidy rules. Samsung SDI, which also operates an EV battery plant in partnership with Stellantis for the American market, is expanding its focus through this long-term agreement. The deal represents one of the company’s first large-scale commitments involving LFP technology, a chemistry that has not traditionally been central to its portfolio, and reinforces its position as one of the limited number of non-Chinese producers of prismatic cells in the United States. The company views the contract as strengthening its competitiveness as renewable-energy deployment accelerates and AI-driven infrastructure grows.