SamsungSDI is accelerating its push into the U.S. Energy Storage System (ESS) market by leveraging ternary NCA (Nickel-Cobalt-Aluminum) and LFP (Lithium Iron Phosphate) batteries. Based on local production and the safety of prismatic batteries, the company has consecutively signed large-scale order contracts, broadening its foothold in the North American market.
According to battery industry sources on the 26th, SamsungSDI America (SDIA) signed an ESS solution supply contract with U.S. energy specialist Alpha Omega Power (AOP) for a scale of 1 GWh (gigawatt-hour). Including the first batch contracted at the end of last year, the total supply volume is 1.5 GWh. While the contract value has not been disclosed, it is estimated to reach several hundred billion won, considering market averages. AOP plans to deploy the supplied ESS solutions in a large-scale power project set to break ground in Texas state next year.
It is assessed that SamsungSDI's strategy, highlighting the safety and technological capabilities of prismatic batteries, proved effective. The product being supplied this time is the 'SBB (Samsung Battery Box) 1.7,' which applies high-capacity high-nickel NCA materials. It shares the same 20-foot (ft) specification as the existing SBB 1.5 but boasts a 17% higher energy density. The product also incorporates SamsungSDI's ESS design know-how, including AI-based pre-diagnosis of abnormalities and lifespan prediction algorithms. It has also obtained certifications such as NFPA 855, the fire safety installation standard by the National Fire Protection Association, and UL 9540, an ESS-related safety certification.
SamsungSDI is targeting the ESS market in the U.S. by utilizing both NCA and LFP batteries. At the end of last year, it signed an ESS LFP battery supply contract worth over 2 trillion won with a U.S. energy infrastructure development and operation company. In March this year, it concluded a battery supply contract worth approximately 1.5 trillion won with a major U.S. energy specialist. The contract at that time included provisions for the sequential supply of NCA and LFP batteries.
Given that the two batteries have different characteristics, SamsungSDI's strategy is to respond to diverse demands based on the strengths of each product. NCA batteries have high energy density, making them advantageous for storing large amounts of energy in limited spaces. In particular, the competitiveness of NCA batteries may be highlighted in fields requiring high output and high energy density, such as Battery Backup Units (BBU), which are gaining attention due to increased power demand from AI data centers. On the other hand, LFP batteries have strengths in terms of relative cost competitiveness, lifespan, and thermal stability.
In line with the expansion of the ESS market, SamsungSDI is also expanding its local production system. SamsungSDI has been producing NCA-based ESS batteries since the fourth quarter of last year by converting part of the electric vehicle battery production line at the Indiana state factory of Star Plus Energy (SPE), a joint venture with global automaker Stellantis. The company plans to begin producing LFP batteries for ESS at the same factory starting from the fourth quarter of this year.
Fabrice Hudry, Vice President and Head of the ESS Team at SamsungSDI Americas (SDIA), stated, "AOP is one of the fastest-growing independent power producers in the United States," adding, "We will continue to expand our business foundation and further strengthen our position in the North American ESS market through differentiated technological capabilities and local production."
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