Archive · 5 Nov 2025
Samsung SDI Reportedly Nears $2.1 Billion Tesla Deal for Energy Storage Batteries
Imagine Tesla needs big batteries to store energy, like a giant power bank for the grid.
They are close to making a deal with a company called Samsung SDI to buy these special batteries.
These batteries will be made in the United States by Samsung SDI.
This is important because Tesla wants to get its batteries from different places, not just one country.
It's also good for Samsung SDI because they have been having some financial problems, and this big deal could help them a lot.
They plan to start making these batteries in 2026.
Another company, LG, is also already supplying similar batteries to Tesla.
Samsung SDI is nearing a potential deal worth approximately USD 2.1 billion to supply Tesla with energy storage batteries starting in 2026.
The agreement involves supplying around 10 GWh of lithium iron phosphate (LFP) battery cells annually.
The cells are expected to be manufactured at Samsung SDI's joint venture facility in Indiana, US, for Tesla's Megapack systems.
This deal could significantly improve Samsung SDI's financial performance amidst recent revenue declines.
Tesla is diversifying its battery suppliers, moving away from Chinese manufacturers like CATL for its energy storage solutions.
- Who
- Samsung SDI and Tesla
- What
- Reportedly nearing a deal for Samsung SDI to supply Tesla with LFP battery cells for energy storage systems.
- When
- Discussions finalizing, with supply expected to begin as early as 2026.
- Where
- Battery cells to be manufactured in Indiana, US, and integrated into Tesla's systems in California.
- Why
- To diversify Tesla's supply chain away from China and meet growing global demand for energy storage solutions, while potentially boosting Samsung SDI's financial performance.
Significance of the Deal for Samsung SDI
Context of the Deal in the Market
Financial Impact and Market Position
Significance of the Deal for Samsung SDI
The deal is seen as a breakthrough that could significantly improve Samsung SDI's performance following recent financial headwinds, including a Q3 revenue decline and operating loss. It would provide much-needed stability and strengthen the company's position in the expanding ESS market.
Context of the Deal in the Market
While a major deal, it aligns with Tesla's broader strategy to diversify away from Chinese suppliers like CATL, who has been a main provider of ESS batteries. The deal helps Samsung SDI capitalize on this market shift and the growing global demand for ESS systems.
Production Capacity and Utilization
Significance of the Deal for Samsung SDI
The agreement could help maximize output from Samsung SDI's underutilized joint venture facility in Indiana, US, which is currently operating at less than 50% capacity due to a slowdown in the US EV market.
Context of the Deal in the Market
The Tesla deal, combined with LG Energy Solution's existing agreement, would contribute significantly to Tesla's target of scaling ESS capacity to 100 GWh within three years, while also diversifying its supply chain.
- Estimated Deal Value
- Approx. 3 trillion won (USD 2.1 billion)
- Potential Annual Revenue for Samsung SDI
- 1 to 1.5 trillion won
- Battery Type
- Lithium Iron Phosphate (LFP) cells
- Estimated Annual Supply Volume
- Around 10 GWh
- Contract Start Date
- As early as 2026
- Manufacturing Location
- Samsung SDI's joint venture facility with Stellantis in Indiana, US
- Intended Use
- Tesla's Megapack assembly lines in California for energy storage systems