Samsung SDI will supply a total of 1.5GWh of energy storage systems (ESS) to a U.S. energy company. By supplying batteries produced at its local U.S. plant, the company plans to expand its business in the North American ESS market.

Samsung SDI announced on the 26th that its U.S. subsidiary, Samsung SDI America (SDIA), has signed a contract with local energy specialist Alpha Omega Power (AOP) to supply 1GWh of ESS. Including the 0.5GWh contracted at the end of last year, the total volume reaches 1.5GWh. The specific contract value has not been disclosed, but the combined supply scale of the first and second contracts is reportedly in the range of several KRW hundred billion.

ESS is a device that stores electricity and supplies it when needed. It is used to store power generated from renewable energy sources such as solar and wind, whose output is variable, or to supply electricity during peak demand hours.

AOP is an energy company in the United States that develops large-scale power storage facilities and generates and sells electricity. The ESS supplied by Samsung SDI is slated to be used in a large-scale power project that will break ground next year in the state of Texas. The stored electricity will be supplied according to demand to enhance the stability of the power grid.

The product being supplied this time is Samsung SDI’s integrated ESS, the “Samsung Battery Box (SBB) 1.7”. It houses batteries and related equipment in a single container and will be produced at the StarPlus Energy (SPE) plant in Indiana, U.S., for delivery within this year.

SBB 1.7 is equipped with batteries using nickel, cobalt, and aluminum (NCA). While maintaining the same 20-foot size as the previous product, its energy density has increased by 17%. This means more electricity can be stored in the same space.

Technologies to enhance safety have also been applied. Artificial intelligence (AI) detects abnormal signs in the batteries in advance and predicts their lifespan. Samsung SDI’s proprietary technology, which directly injects fire-extinguishing agents when a problem arises inside the battery, is also built in. The product also meets U.S. ESS-related fire safety standards and safety certifications.

Leveraging prismatic batteries and U.S. local production to pursue additional orders

Samsung SDI has been expanding its local business this year by consecutively signing ESS supply contracts with U.S. energy companies.

In particular, it is highlighting its prismatic battery technology as a competitive edge. Prismatic batteries encase internal materials in a rigid metal case, enhancing durability and safety against external impact.

Samsung SDI is also emphasizing that it is currently the only non-Chinese company supplying prismatic batteries for ESS in North America. Its ability to manufacture products at a local U.S. plant is also cited as a competitive advantage.

Samsung SDI is currently in talks with several U.S. energy companies on additional supply contracts and expects new orders to be secured in the near future.

Paul Choi, CEO of AOP, said, “Samsung SDI’s U.S.-made ESS will play an important role in our continued growth,” adding, “This second contract will also help strengthen the supply chain within the United States.”

Fabrice Heudry, Vice President and Head of the ESS Team at Samsung SDI America, said, “With differentiated technology and local production, we will continue to expand our business base and further reinforce our position in the North American ESS market.”

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