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Samsung SDI seals LFP battery deal with U.S. client worth over $1.36 billion

Published: 10 Dec. 2025, 15:21 Updated: 10 Dec. 2025, 18:55

SARAH CHEA
[email protected]

Samsung SDI's energy-storage system with lithium iron phosphate (LFP) batteries [SAMSUNG SDI]

Samsung SDI sealed a deal worth well over 2 trillion won ($1.36 billion) to supply lithium iron phosphate (LFP) batteries for energy-storage systems to an undisclosed major U.S. energy company.

The Korean battery maker said Wednesday it marks the first time it has announced a contract for LFP-based ESS solutions, a notable shift for a company whose flagship products have long centered on nickel-cobalt-aluminum (NCA) cells.

The deal totals over 2 trillion won in value and calls for deliveries over roughly three years, beginning in 2027.

Samsung SDI will convert part of the production lines at its Indiana battery plant — operated jointly with Stellantis — to manufacture LFP cells.

With EV demand losing momentum, battery manufacturers are increasingly turning their sights to the energy-storage market. Driven by rising electricity consumption and the AI boom, U.S. ESS demand is projected to more than double, from 59 gigawatt-hours in 2025 to 142 gigawatt-hours in 2030, according to SNE Research.

Notably, the latest contract also marks the first time a Korean supplier will deliver prismatic LFP batteries for ESS applications. Prismatic cells offer superior durability compared to pouch-type cells, featuring stronger resistance to external impact and designs that allow heat to be released immediately, which enhances safety.

“Samsung SDI’s prismatic cells employ a rigid aluminum-can architecture that provides robust protection against external shocks,” it said, adding that the cells incorporate vents, fuses and other safety mechanisms engineered to expel heat instantaneously.

"The batteries also feature the No-TP (No Thermal Propagation) technology, which enhances safety further by inserting thermal-insulation materials between cells and using a heat-propagation prediction program to prevent rising temperatures in one cell from spreading to adjacent cells."

BY SARAH CHEA [[email protected]]