Samsung SDI has announced that its US subsidiary, Samsung SDI America, has signed a three-year agreement to supply prismatic lithium iron phosphate (LFP) battery cells for energy storage system installations in North America, beginning in 2027. The batteries will be manufactured at Samsung SDI’s facility in Indiana, with the contract reportedly valued at over KRW 2 trillion.
The new supply agreement specifically targets growing demand for energy storage solutions in the United States, driven by increased adoption of renewable energy and artificial intelligence workloads. Samsung SDI highlights a market preference for prismatic cells that offer advanced anti-thermal propagation design, prioritizing safety and durability.
Samsung SDI reports that its prismatic LFP cells will be deployed within the Samsung Battery Box (SBB) 2.0, a 20-foot containerized, all-in-one energy storage solution. Each SBB 2.0 contains multiple battery racks to enable scalability and simplified deployment. The SBB 2.0 employs Samsung SDI’s proprietary No Thermal Propagation (No TP) technology, using thermal insulation between cells and predictive temperature monitoring to prevent heat from spreading between cells.
Technical improvements reportedly include an aluminum casing with safety features such as vents and fuses, increasing resistance to external shocks compared to other cell types. Samsung SDI notes that prismatic cells are favored in both electric vehicle and energy storage sectors due to these enhanced safety characteristics. The company also claims to be the only non-Chinese manufacturer currently producing prismatic batteries in the US, positioning itself as a unique supplier in the domestic market.
According to market research cited by Samsung SDI, US demand for energy storage systems is expected to more than double from 59 GWh in 2025 to 142 GWh by 2030, with prismatic LFP batteries gaining share due to cost and safety benefits. Beyond this contract, Samsung SDI is in discussions with other customers for both LFP and nickel cobalt aluminum (NCA) batteries.
“It is a significant opportunity for SAMSUNG SDI to expand into the U.S. ESS market with the first long-term contract for LFP supply,” said a Samsung SDI official. “Through the first supply of SBB 2.0 for ESS installation in the U.S., SAMSUNG SDI will start providing U.S. customers with ESS batteries to meet their needs not only for high-performance but also for enhanced safety and price competitiveness, enabling them to stabilize power supplies in the era of renewable energy and AI.”
Source: Samsung SDI
