Samsung SDI Signs ESS Battery Supply Contract Worth 400 Billion KRW in the US
Supplying Samsung Battery Box, an ESS Product,
to NextEra Energy in the US... Contract Worth 437.4 Billion KRW
Additional Disclosure Expected This Year... Further Negotiations Underway
Samsung SDI will supply batteries for energy storage systems (ESS) to NextEra Energy (NEE), the largest power company in the United States. The domestic battery industry is expanding its product range by targeting the ESS and data center markets amid sluggish demand for electric vehicles.
On the 14th, Samsung SDI announced through a public disclosure that it signed an ESS battery supply contract worth $310.1 million (approximately 437.4 billion KRW) with NextEra Energy on the 13th. This amount corresponds to 1.93% of last year's sales revenue of 22.7 trillion KRW. The contract period is from April 15 of last year to November 20 of this year.
On March 6 last year, visitors at 'InterBattery 2024' held at COEX in Gangnam-gu, Seoul, are looking around the energy storage system (ESS) batteries exhibited at the Samsung SDI booth. 2024.03.06. Photo by Kang Jin-hyung
View original imageSamsung SDI is also in discussions to finalize additional contracts with NextEra Energy. A Samsung SDI official stated, "The supply of ESS batteries to this customer (NextEra Energy) will be carried out through multiple projects," and added, "We will disclose any confirmed supply contracts in accordance with the timely disclosure standards."
The product Samsung SDI supplies is the ESS flagship product, the "Samsung Battery Box (SBB)." The SBB is a finished product that integrates batteries with safety and air conditioning devices. Samsung SDI enhanced the capacity and safety of this product and received an Innovation Award at CES 2025, the world's largest home appliance and IT exhibition held earlier this year.
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Samsung SDI, along with LG Energy Solution and SK On, the three major domestic battery companies, are focusing on the ESS business. They are attracting ESS customers in some U.S. states expanding eco-friendly energy production and in Jeju Island, South Korea. They aim to use ESS batteries as a breakthrough to overcome the electric vehicle chasm (Chasm: temporary demand stagnation).
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