Samsung SDI Unit Signs 1 GWh U.S. Energy Storage Supply Deal

Samsung SDI’s U.S. subsidiary has signed a new agreement to supply 1 gigawatt-hour of energy storage system solutions to American developer Alpha Omega Power, strengthening the South Korean battery maker’s position in the U.S. storage market.

Samsung SDI said Monday that its Michigan-based unit, Samsung SDI America, will complete the supply by December. The latest agreement follows an initial contract signed last year. Together, the two deals cover 1.5 GWh of storage capacity and are worth hundreds of billions of won, according to the company.

The new order centers on Samsung Battery Box 1.7, the company’s integrated energy storage solution. The system uses nickel-cobalt-aluminum batteries and will be manufactured at the StarPlus Energy plant in Indiana.

StarPlus Energy is a joint venture between Samsung SDI and global automaker Stellantis, with the Korean battery company holding a 51 percent stake and Stellantis owning the remaining 49 percent. The Indiana facility operates as an electric-vehicle battery plant and also produces batteries for energy storage systems.

Alpha Omega Power Chief Executive Paul Choi said the second agreement would reinforce the company’s domestic supply chain for next-generation energy infrastructure. The deal gives the U.S. developer an additional source of locally manufactured storage equipment while extending its commercial relationship with Samsung SDI.

Energy storage systems hold electricity for later use and can help power networks manage fluctuations between supply and demand. For battery manufacturers, the sector also provides a business line beyond electric vehicles. Samsung SDI’s use of its Indiana manufacturing base links the new contract directly to production in the United States.

The agreement adds to several energy-storage contracts that Samsung SDI has secured with U.S. companies this year. The company also said it is discussing additional orders with other local customers, suggesting that the Alpha Omega Power deal is part of a broader effort to expand its U.S. energy-storage business.

The latest contract is significant for Samsung SDI because it combines a sizeable order with production at an existing U.S. joint-venture facility. Delivery by December would turn the Indiana plant into a direct supplier for Alpha Omega Power’s storage projects and raise the total volume covered by the two companies’ agreements by two-thirds from the initial 0.5 GWh to 1.5 GWh.