Samsung SDI, the South Korean battery maker, has secured a major contract valued at approximately $1 billion (1.5 trillion won) to supply prismatic batteries for energy storage systems (ESS) in the United States. The agreement, which will see deliveries begin this year and continue through 2029, marks a significant strategic push by Samsung into the rapidly growing North American energy storage market.
Under the deal, Samsung SDI will initially provide nickel-cobalt-aluminum (NCA) batteries and subsequently switch to lithium iron phosphate (LFP) cells. The batteries will be produced at the StarPlus Energy joint venture facility in Indiana, a partnership between Samsung SDI and automaker Stellantis. This facility is part of a broader $5.7 billion investment and has received a $7.54 billion federal loan aimed at supporting EV battery production.
The expansion is heavily supported by U.S. policy, particularly incentives from the Inflation Reduction Act, which offers tax credits of $35 per kilowatt-hour (kWh) for cells and $10 per kWh for modules produced domestically. This positioning makes Samsung SDI the only non-Chinese supplier of prismatic ESS batteries in North America, a key differentiator as the region seeks to diversify its supply chains.
Despite the strategic importance of the deal, Samsung's stock (ticker: OL2T.L) experienced a slight decline. Market analysts attribute the muted reaction to investor caution regarding the competitive global battery market and the time required for such large-scale investments to translate into tangible earnings. The near-term profitability of ESS projects remains subject to fluctuating energy markets and production ramp-up timelines.
