Samsung SDI to Supply $2.1B ESS Batteries to Tesla

South Korea’s Samsung SDI is reportedly on the verge of finalizing a monumental agreement with Tesla, set to supply over 3 trillion won ($2.11 billion) worth of energy storage system (ESS) batteries over the next three years. The deal, if confirmed, would mark one of the largest collaborations between a major battery manufacturer and an electric vehicle (EV) giant.

Sources in the battery industry, speaking on the condition of anonymity, told that the negotiations have progressed rapidly. While Samsung SDI has yet to officially confirm the deal, the scale of the supply highlights the growing demand for efficient energy storage solutions, especially as Tesla expands its EV and renewable energy operations globally.

The ESS batteries are expected to support Tesla’s expanding lineup of energy storage projects, including Powerwall and large-scale utility applications. Analysts suggest that this deal could strengthen Samsung SDI’s position in the global battery market, which is increasingly competitive due to surging EV adoption and a focus on renewable energy infrastructure.

This potential partnership also reflects Tesla’s strategy to diversify its battery suppliers beyond the well-known lithium-ion leaders, ensuring a stable supply chain for its ambitious energy and EV projects. Market watchers note that agreements of this size often signal broader shifts in the global energy storage sector, where innovation and supply capacity are critical.

While both companies have remained tight-lipped about the final terms, industry experts believe the deal could pave the way for further collaborations between South Korean battery manufacturers and global EV leaders. The coming months will likely reveal more concrete details as the agreement moves toward formalization.