Tesla May Tap Samsung SDI for Massive Energy Storage Battery Supply

Samsung might be gearing up for another big deal with Tesla, and this time that could be on the battery front. Reports coming out of Korea say Samsung SDI, the company’s battery division, is in talks to supply Tesla with lithium iron phosphate (LFP) batteries for its energy storage systems (ESS). The deal could be worth around 3 trillion won (~$2.1 billion) spread over three years.

Samsung SDI could make about 10 gigawatt-hours worth of batteries for Tesla

If things go through, Samsung SDI would reportedly make about 10 gigawatt-hours (GWh) worth of batteries to Tesla. It could most likely be made at its Indiana plant in the US. Moreover, production could kick off sometime in 2027. For now, though, nothing’s signed, and Samsung SDI has kept quiet about the details. Neither has Tesla officially confirmed anything.

This move lines up perfectly with what both companies are trying to do. For Tesla, it’s a way to rely less on China for parts. The company currently sources many of its ESS batteries from China’s CATL, but new US rules have made importing those batteries more complicated. For Samsung, it’s a smart way to make use of extra capacity.

Interestingly, this wouldn’t be the first time Samsung and Tesla have teamed up. Just a few months ago, Samsung Foundry reportedly bagged a $16.5 billion deal to produce Tesla’s next-gen AI6 chip using its advanced 2nm process. Moreover, recent reports suggest that Samsung may have secured a contract to manufacture A15 chips as well. If this new deal happens, the two giants could end up working together across chips and batteries.