Samsung SDI set to sign record $730M ESS deal with Florida's NextEra Energy

Industry

Published: 05 Jul. 2024, 16:29

Samsung SDI set to sign record $730M ESS deal with Florida's NextEra Energy

Samsung's latest Samsung Battery Box, a battery for energy storage systems, features a 37 percent increase in energy density over previous products. [SAMSUNG SDI]

Samsung SDI is in talks with Florida energy company NextEra Energy to supply batteries for energy storage systems (ESS) in deals potentially worth 1 trillion won ($730 million), the largest ESS agreement for any Korean battery makers.

The battery manufacturer said Friday it had agreed with NextEra Energy "for long-term ESS battery supply," adding that deals will be signed for multiple projects.

Samsung SDI will provide NextEra Energy with about 6.3 gigawatt-hours, according to local media reports, which is 11.5 percent of North America's total ESS capacity last year.

The deals could be worth around 1 trillion won, reports said, though Samsung SDI did not confirm this.

An ESS improves grid stability by storing excess energy and releasing it when demand rises. It is therefore considered crucial in increasing the efficiency of renewable energy plants. The demand for ESS is growing as companies scramble to install solar panels to generate electricity even during power outages.

Samsung is likely to supply the latest version of its Samsung Battery Box, which boasts a 37 percent increase in energy density over previous products.

The latest potential deal could open another chance for Korean firms in the ESS battery market, which Chinese makers largely dominate. The U.S. government recently announced a 25 percent tariff on Chinese-made ESS batteries.

Samsung SDI used to control the sector with a 50-percent market share until 2018, but this dropped to 4.9 percent due to cheaper options from Chinese players.

CATL dominated the ESS market last year, with a 40-percent share. BYD accounted for 12 percent of the market, and EVE 11 percent.

The U.S. ESS market, which totaled around $8 billion this year, is expected to jump 140 percent to $18.7 billion by 2030.

BY SARAH CHEA [chea.sarah@joongang.co.kr]