Samsung SDI announced Wednesday it has finalized a contract valued at over 2 trillion won ($1.36 billion) to supply lithium iron phosphate (LFP) batteries for energy-storage systems (ESS) to an undisclosed major U.S. energy company.
The deal, which calls for deliveries over approximately three years beginning in 2027, signifies a strategic shift for the Korean battery maker, whose primary focus has historically been on nickel-cobalt-aluminum (NCA) cells.
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The contract is notable as the first time Samsung SDI has publicly announced an LFP-based ESS supply agreement. It is also the first instance of a Korean supplier delivering prismatic LFP batteries for ESS applications, a format preferred for its superior durability and heat management compared to pouch-type cells.
Samsung SDI confirmed that it plans to convert part of the production lines at its Indiana battery plant, a joint venture operated with Stellantis, to facilitate the manufacture of these LFP cells. This move aligns with a broader industry trend among battery makers to pivot toward the energy-storage market amid moderating electric vehicle (EV) demand.
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According to SNE Research, U.S. ESS demand is projected to more than double from 59 gigawatt-hours (GWh) in 2025 to 142 GWh in 2030, driven by rising electricity consumption and the growth of Artificial Intelligence (AI) data centers.
The company highlighted the safety features of its prismatic cells. “Samsung SDI’s prismatic cells employ a rigid aluminum-can architecture that provides robust protection against external shocks,” the company stated, adding that the cells incorporate safety mechanisms such as vents and fuses to immediately expel heat.
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Furthermore, the batteries feature Samsung SDI’s proprietary No-TP (No Thermal Propagation) technology. This safety feature uses thermal-insulation materials inserted between cells and a heat-propagation prediction program to prevent a thermal event in one cell from spreading to adjacent cells.
