Samsung SDI has announced a landmark ₩1.5 trillion deal to supply Energy Storage System (ESS) batteries to a major U.S. energy company for four years, starting in 2026.
This agreement didn't happen in a vacuum; it's the result of a powerful combination of policy incentives and market demand. First, the U.S. Inflation Reduction Act (IRA) has been a game-changer. It provides significant tax credits, like the '45X' credit, for battery cells and modules manufactured in the U.S. Second, an additional Investment Tax Credit (ITC) bonus for using domestic content makes American-made components more attractive. Third, the U.S. is scheduled to increase tariffs on Chinese non-EV lithium-ion batteries to 25% in 2026. These three pillars make producing batteries at the StarPlus Energy plant in Indiana—Samsung SDI's joint venture with Stellantis—a highly strategic and cost-effective move.
At the same time, demand for energy storage in the U.S. is exploding. The country saw record-high ESS installations in 2024 and 2025, with growth driven not just by utilities but also by emerging needs from data centers. This surging demand provides the confidence needed for a large-scale, multi-year supply contract, assuring a stable outlet for the batteries produced in Indiana.
For Samsung SDI, this pivot to ESS is also a crucial defensive move. The company faced losses in 2025 due to a slowdown in the global EV market. The ESS business served as a vital cushion, and this new contract significantly strengthens that part of its portfolio. It's a follow-up to previous ESS deals and investments in the local Indiana supply chain, showing a clear, deliberate strategy to build a strong presence in the North American ESS market.
Finally, the deal positions Samsung SDI within a competitive landscape where non-Chinese suppliers are gaining traction. Following a massive ESS contract between LG Energy Solution and Tesla, it's clear that major U.S. buyers are diversifying their supply chains. Samsung SDI's entry with its prismatic cells offers another key option for this growing market, solidifying the trend towards U.S.-based, non-Chinese battery production.
- ESS (Energy Storage System): A large-scale battery system used to store electrical energy, often from renewable sources like solar or wind, and release it when needed.
- IRA (Inflation Reduction Act): A U.S. law enacted in 2022 that includes major provisions to boost domestic clean energy production through tax credits and other incentives.
- Prismatic Battery: A type of battery cell with a flat, rectangular shape, as opposed to cylindrical or pouch-type cells. It is known for its space efficiency and stability.