SamsungSDI is accelerating its efforts to capture the U.S. ESS (Energy Storage System) 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 secured consecutive large-scale orders, expanding 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 1GWh (gigawatt-hour). Including the first batch, the total supply volume reaches 1.5GWh. While the contract value has not been disclosed, it is estimated to amount to several hundred billion won. 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 the strategy emphasizing the safety and technological capabilities of prismatic batteries was 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, approx. 6m) specification as the existing SBB 1.5 model but boasts a 17% higher energy density. The product integrates SamsungSDI's ESS design know-how, including the application of AI (Artificial Intelligence)-based pre-diagnosis and lifespan prediction algorithms.
SamsungSDI is targeting the U.S. ESS market by utilizing both NCA and LFP batteries. At the end of last year, the company signed an ESS LFP battery supply contract worth over 2 trillion won with a U.S. energy-related infrastructure development and operation company. In March this year, it signed a battery supply contract worth 1.5 trillion won with a major U.S. energy specialist. The contract at that time included provisions for sequential supply of NCA and LFP batteries.
Given the different characteristics of the two batteries, 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 BBU (Battery Backup Units), which are gaining attention due to increasing 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, the local production system is also being expanded. SamsungSDI will convert part of its electric vehicle battery production line at the Indiana state factory of Star Plus Energy (SPE), a joint venture with global automaker Stellantis, to produce NCA-based ESS batteries starting from the fourth quarter of last year. Starting from the fourth quarter of this year, the company will also begin producing LFP batteries for ESS at the same factory.
in INDUSTRY
