Samsung SDI and Tesla have reportedly agreed on a battery supply deal worth approximately $2.11 billion (3 trillion won) over three years for Energy Storage System (ESS) batteries, according to sources cited by the Korea Economic Daily.
The agreement involves Samsung SDI supplying batteries exclusively for Tesla's ESS products, such as Megapack and Powerwall, and not for electric vehicles, with an estimated supply of 10 GWh per year. However, Samsung SDI has stated that nothing has been finalized, and Tesla has not commented on the report.
This deal would make Samsung SDI Tesla's second major battery supplier outside of China, alongside CATL, and comes as Tesla's energy division sees record deployments, with Megapack installations growing faster than EV deliveries. CEO Elon Musk has suggested that Tesla Energy could eventually surpass the car business.
Amid the news, Samsung SDI reported a 4% drop in quarterly revenue for Q3 2025, with revenue of KRW 3.05 trillion ($2.13 billion) and an operating loss of KRW 591.3 billion, though it posted a net profit of KRW 5.7 billion due to gains from discontinuing its polarized film business. The company's battery business revenue fell 4.8% quarter-on-quarter and 23.2% year-on-year to KRW 2.82 trillion.
Samsung SDI has secured multiple supply contracts totaling over 110 GWh with global automotive companies and won deals in government-led ESS projects. It forecasts a surge in Q4 earnings driven by growth in the European EV market and U.S. ESS market, and plans to establish manufacturing infrastructure in the U.S., including mass production of LFP batteries by Q4 2026.
Additionally, Samsung SDI debuted new ESS products at the RE+ trade show in Las Vegas, including the Samsung Battery Box (SBB) 1.7 and SBB 2.0, which feature Enhanced Direct Injection (EDI) technology and AI-based predictive maintenance, with production scheduled to begin in the U.S. next year.
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