Seoul: Samsung SDI Co. has announced it has signed an agreement with a U.S.-based energy company to supply prismatic batteries for energy storage systems (ESSs) valued at 1.5 trillion won (approximately $1 billion). The South Korean battery manufacturer aims to strengthen its foothold in the North American market through this significant deal.

According to Yonhap News Agency, Samsung SDI's affiliate, Samsung SDI America, has recently completed the deal, which entails the delivery of batteries starting this year and continuing over a four-year period until 2029. The company has not disclosed further specifics, such as the identity of the customer involved.

The initial phase of the agreement will see Samsung SDI supplying Nickel-Cobalt-Aluminum (NCA) products, with plans to expand later into lithium iron phosphate (LFP) batteries. The production of these ESS batteries will take place at the Indiana plant of StarPlus Energy, a joint venture between Samsung SDI and Stellantis.

Samsung SDI highlighted its strategy to enhance its presence in the U.S. market, which is experiencing a surge in demand for ESS due to the growth of renewable energy and artificial intelligence sectors. The company is also in discussions with various global customers to supply batteries, anticipating positive developments soon.

The battery maker emphasized its commitment to expanding its North American market presence, positioning itself as the sole non-Chinese supplier of prismatic ESS batteries in the region. Samsung SDI's products are noted for their durability and fire-safety technologies, which have earned recognition among U.S. energy firms.