TLDRs;
- Samsung SDI landed a $1.4B U.S. LFP supply deal starting in 2027.
- The company will convert existing American production lines for ESS battery output.
- Growing AI and data-center power needs are accelerating U.S. demand for long-duration storage.
- Energy-management, DERMS, and EPC providers see new openings in hyperscale storage builds.
Samsung SDI is deepening its footprint in the United States with a landmark energy-storage supply agreement valued at more than US$1.4 billion, marking one of the company’s largest North American commitments to date.
The South Korean battery manufacturer said its U.S. subsidiary will provide lithium iron phosphate (LFP) cells for an unnamed customer beginning in 2027, with shipments running for three years. The batteries will be produced through a conversion of existing manufacturing lines at its U.S. plant, a move that underscores Samsung SDI’s accelerating pivot toward energy-storage systems (ESS) amid evolving U.S. market dynamics.
As demand for long-duration, grid-supporting storage swells, fueled by data centers, electrification upgrades, and utility-scale renewables, the deal positions Samsung SDI to capture a growing slice of America’s rapidly expanding battery infrastructure market.
Shifting Toward Storage
Samsung SDI’s decision to convert portions of its U.S. lines speaks volumes about where the market is headed. For years, the company focused heavily on electric-vehicle batteries, but demand fluctuations and changing U.S. subsidy landscapes have pushed producers to diversify. ESS, powered largely by LFP chemistry, is emerging as one of the clearest growth lanes.
Industry reports suggest Samsung SDI had already been weighing a deeper expansion into storage, including talks, reported but not finalized, around potential supply relationships with major U.S. buyers. Meanwhile, its joint venture plant with Stellantis in Indiana is reportedly preparing to allocate part of its future capacity toward ESS lines, potentially reaching roughly 30 GWh of storage-focused output by late 2026.
Data Centers Drive a New Wave
Behind the rapid shift is an unmistakable force: the unprecedented surge in electricity demand from AI and cloud data centers. Operators are increasingly turning to “behind-the-meter” battery storage to bypass lengthy grid-interconnection queues.
Companies such as Prometheus Hyperscale are building multi-gigawatt data center campuses across the Mountain West, with long-duration storage already contracted for deployment starting in 2027, the same year Samsung SDI’s new LFP supply begins.
In Michigan, a major hyperscale campus announced by OpenAI, Oracle, and Related Digital will require around 1.4 GW of power. Local utility DTE Energy plans to rely on a developer-funded battery facility valued at about US$2 billion, with construction slated for 2026.
As Tesla ramps up Megapack output in Texas, targeting up to 40 GWh annually, the broader U.S. grid-storage race is intensifying. Samsung SDI’s shift suggests major suppliers are preparing for sustained growth in multi-hour storage rather than cyclical EV demand.
Opportunities for Energy-Tech Firms
The ESS boom is not limited to battery manufacturers. Growth in hyperscale and AI-driven facilities is creating opportunities for energy-management software companies, distributed resource platforms, and engineering firms specializing in large-scale electrical systems.
Variable data-center loads, high spikes, rapid cycling, and constant uptime requirements, make them ideal candidates for storage paired with advanced management platforms. Vendors of energy-management systems (EMS) and distributed energy resource management systems (DERMS) see a growing opening, while EPC firms and thermal-systems specialists are positioning for large-scale battery deployments. As next-generation battery chemistries mature, faster procurement cycles are expected once pilot installations prove out long-duration capabilities.
Strategic Bet Amid Market Transition
Samsung SDI’s latest agreement reinforces a broader realignment across the battery sector. With U.S. EV subsidies gradually tapering and grid bottlenecks worsening, energy-storage systems, especially LFP-based ones, are emerging as the stable demand center for the next decade.
By converting existing lines instead of waiting on new construction, the company signals a desire to move quickly while leveraging current infrastructure to meet long-term ESS demand.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
