SEOUL, Korea – December 10, 2025 – SAMSUNG SDI today announced the South Korean battery maker will start supplying prismatic lithium iron phosphate (LFP) batteries for installation of energy storage systems in the United States. 

The company said its Michigan-based subsidiary SAMSUNG SDI America recently inked a deal with a U.S. customer to supply LFP cells for ESS over three years starting from 2027. The value of this contract is well in excess of KRW 2 trillion.

Under this contract, the batteries will be manufactured at SAMSUNG SDI’s manufacturing facility located in the U.S. The battery maker has been shifting some of production lines for electric vehicles to lines for ESS batteries in order to meet local demand.

SAMSUNG SDI's prismatic LFP cells for ESS are packed in a 20-foot container, named as Samsung Battery Box (SBB) 2.0, an all-in-one ESS solution that incorporates a number of battery racks in a single container for greater portability and user convenience in terms of installation. SAMSUNG SDI launched the first edition of SBB with its flagship NCA cells in 2023.

[An ESS application, SBB(Samsung Battery Box) 2.0, equipped with LFP batteries]

This agreement marks a significant milestone for SAMSUNG SDI, which has traditionally focused on NCA batteries. By expanding its portfolio into LFP technology, the company is poised to strengthen its differentiated technological edge and further accelerate the global expansion of its prismatic batteries for ESS.

Through years-long R&D efforts for LFP competitiveness, the company says it has overcome the lower energy density disadvantage while maximizing safety and price competitiveness by applying differentiated anode material and electrode process.

Industry observers note that the inherent durability advantages of prismatic cells over pouch-type formats, coupled with SAMSUNG SDI’s advanced safety technologies recognized in global markets, played a key role in securing the company’s latest LFP battery supply contract.

Compared to ESS using other types of LFP cells, SAMSUNG SDI says its prismatic LFP cells are more resistant to external shocks due to the aluminum casing with safety design features like vents and fuses. There has been growing preference for prismatic cells from both EV and ESS sectors for safety reasons.

Equipped with SAMSUNG SDI's prismatic cells, SBB features proprietary No Thermal Propagation (No TP) technology - preventing heat from spreading to adjacent cells by placing thermal insulation materials between cells and measuring the temperature of a specific cell in when it rises through an exclusive prediction program.

It is also notable that SAMSUNG SDI is regarded as the only non-Chinese manufacturer of prismatic batteries currently operating in the United States, a position that is seen as strengthening its competitive standing as it expands its presence in the local market.

SAMSUNG SDI is also strengthening its position in the U.S. market, where demand for ESS is rapidly rising amid the expansion of renewable energy development projects and the accelerated growth of the AI industry.

According to market researcher SNE, U.S. ESS demand is expected to more than double from 59 GWh in 2025 to 142 GWh by 2030, with a growing preference for LFP chemistry and prismatic form factors due to their superior cost efficiency and safety.

In addition to the latest contract, SAMSUNG SDI is currently in discussions with multiple global customers regarding the supply of both LFP and NCA batteries, fueling expectations for additional contracts in the near future.

"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."