Wedoany.com Report-Dec.10, Samsung SDI announced on Wednesday that its U.S. subsidiary, Samsung SDI America, has secured a major contract to supply prismatic lithium iron phosphate (LFP) batteries for energy storage systems to a United States-based customer. The agreement is valued at over 2 trillion won (approximately $1.36 billion).

Deliveries under the three-year contract are scheduled to begin in 2027. The company described the customer as an energy infrastructure development and operations firm but did not disclose its name.

Following the announcement, Samsung SDI shares rose as much as 6.1% during morning trading on the Korea Exchange, significantly outperforming the broader KOSPI index, which declined 0.1%.

The batteries will be produced by converting existing production lines at Samsung SDI's manufacturing facility in the United States. The company stated that the shift reflects adjustments to meet evolving demand patterns in the North American market.

Samsung SDI is currently expanding its presence in the U.S. through a joint venture with Stellantis to produce electric vehicle batteries. In parallel, it has been adapting some production capacity toward energy storage systems, which utilize similar cell chemistry to automotive batteries but are deployed in stationary applications such as data centers and grid-scale projects.

The growing requirement for reliable energy storage solutions has created new opportunities for battery manufacturers. Energy storage systems play an important role in integrating renewable energy sources and supporting the operational needs of high-power facilities, including data centers.

South Korean battery producers have been actively reallocating manufacturing resources between electric vehicle and energy storage applications to align with market developments and customer requirements in major regions.

This latest contract strengthens Samsung SDI's position in the fast-expanding energy storage sector and demonstrates continued confidence in its LFP technology, which offers advantages in cost, safety, and longevity for large-scale stationary use.

The multi-year supply agreement provides Samsung SDI with clear revenue visibility starting in 2027 and supports the company's strategy to diversify its product portfolio across both mobility and energy infrastructure segments. The positive market reaction underscores investor recognition of the growing importance of energy storage within the broader battery industry landscape.