Samsung SDI Secures 30GWh ESS Capacity in U.S. ... New Growth Engine Amid EV Slump

Samsung SDI will expand its annual battery production capacity for energy storage systems (ESS) in the United States to 30 gigawatt-hours (GWh) by the end of next year. As profitability has deteriorated due to slowing demand for electric vehicle batteries and reduced orders from North American automakers, the company aims to secure new growth momentum centered on the U.S. market by shifting its focus to ESS.

On October 28, following its third-quarter earnings announcement, Samsung SDI stated during a conference call, "By converting the SPE line to ESS production, we plan to secure approximately 30GWh of ESS battery production capacity in the U.S. by the end of 2026."

Earlier this month, Samsung SDI began operating its nickel-cobalt-aluminum (NCA) battery line at the SPE plant. The company is also preparing to convert a production line to lithium iron phosphate (LFP) batteries in the fourth quarter of next year. Once both lines are operational, full-scale mass production of ESS batteries in the U.S. is expected to begin.

Samsung SDI Giheung Plant view. Photo by Samsung SDI

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Samsung SDI posted a consolidated operating loss of 591.3 billion won in the third quarter of this year, driven by sluggish demand in the electric vehicle market and decreased orders from joint venture partners. Amid four consecutive quarters of losses, the company plans to foster ESS as its next growth engine and use it as a breakthrough to improve profitability.

Kim Jongseong, Head of Management Support at Samsung SDI, said, "ESS demand is growing, especially in the U.S., but profitability is not as strong as expected due to tariff burdens and other factors. Next year, we anticipate that ESS demand will begin to grow in earnest, driven by the expansion of the artificial intelligence (AI) industry and the increase in eco-friendly power generation." Cho Yonghwi, Head of the ESS Business Team, explained, "Local production capacity in the U.S. is only about 30% of ESS demand this year, so supply remains insufficient. We expect supply and demand to reach equilibrium around 2030."

With these measures, Samsung SDI aims to strengthen its capacity to respond to the energy storage system market and nurture ESS as a major growth engine, following power tools and electric vehicles.

According to market research firm SNE Research, global ESS demand is projected to exceed 400GWh by 2030, up from around 160GWh this year. In particular, the U.S. market is expected to grow from 80GWh in 2025 to 130GWh in 2030, driven by the need for power stability and carbon neutrality goals.

Recently, Samsung SDI introduced new products with enhanced energy density, the "SBB 1.7" (prismatic NCA), and improved safety, the "SBB 2.0" (prismatic LFP). Based on these, the company plans to expand its lineup of prismatic batteries for ESS and increase orders from U.S. customers.

Samsung SDI is also targeting the rapidly growing battery backup unit (BBU) market for data centers, fueled by the spread of AI infrastructure. Samsung SDI's market share for BBU cells is estimated at about 40% this year, with related sales rising from 2% last year to 11% this year.

Park Jongseon, Head of Strategic Marketing, said, "We are developing LFP and mid-nickel prismatic batteries with the goal of mass production by 2028. We will strengthen our portfolio of high-efficiency prismatic products across both ESS and electric vehicles."

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