Samsung SDI has locked in a major multi-year agreement to supply energy storage system (ESS) batteries, widely believed to be with Tesla, though the official details will remain confidential until 2030. The deal, negotiated since last year, calls for Samsung SDI America to deliver 10 GWh of lithium iron phosphate (LFP) ESS batteries annually over three years starting in 2027—a contract worth around 3 trillion won.

The move aligns with Tesla’s strategy to scale up its energy storage business, anticipating future power shortages driven by rapid AI data center growth and expanding its footprint in new energy and grid services. This follows a similar pattern observed last July, when LG Energy Solution secured a three-year ESS LFP supply deal—also presumed to be with Tesla—valued at approximately 6 trillion won. Together, these agreements underscore Tesla’s drive to secure high-volume ESS battery capacity for coming demand.

Samsung SDI’s latest win comes shortly after it announced a separate 2 trillion won ESS LFP battery order from a U.S. energy infrastructure company last month. Back-to-back contracts highlight battery makers’ growing focus on stationary storage amid a relative slowdown in electric vehicle demand. While Samsung SDI historically supplied nickel-cobalt-aluminum (NCA) batteries for ESS, it has been accelerating plans to build LFP production lines, responding to the technology’s dominant market share—now roughly 80% of the global ESS sector.

To support this shift, Samsung SDI plans to repurpose electric vehicle battery lines at its U.S. joint venture plant with Stellantis for ESS battery manufacturing. The company is targeting 30 GWh in annual ESS battery production capacity in the United States by year-end. According to BloombergNEF, cumulative U.S. ESS installation capacity is projected to surge from 19 GW in 2023 to 250 GW by 2035, signaling vast growth potential in grid-scale storage.