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Samsung SDI, Tesla in talks over ESS battery deal

Published: 03 Nov. 2025, 21:51

Samsung SDI headuquarters [SAMSUNG SDI]

Samsung SDI is reportedly in discussions with Tesla over a potential deal to supply batteries for energy storage systems (ESS), according to industry sources on Monday.

The talks come as demand for ESS grows rapidly in North America, driven by a surge in investments in AI data centers. Tesla is said to have approached Samsung SDI about supplying batteries for that purpose.

If the deal materializes, production would likely take place at Samsung SDI’s battery joint venture plant with Stellantis in Indiana, which is currently under construction. During its third-quarter earnings call last month, Samsung SDI said it plans to convert some of the plant’s electric vehicle battery lines to produce batteries for ESS. The company aims to expand its ESS battery production capacity in the United States to 30 gigawatt-hours by the end of next year.

Tesla’s interest in Samsung SDI appears to be part of a broader strategy to reduce dependence on Chinese suppliers within its battery supply chain.

The AI boom is rapidly increasing electricity demand in the United States, spurring explosive growth in renewable energy generation such as solar and wind. However, due to the intermittent nature of renewable sources, ESS is essential for storing power and ensuring a stable supply.

Currently, the only companies capable of producing ESS-scale batteries in the United States are Korea’s three major battery makers — LG Energy Solution, Samsung SDI and SK on — along with Japan’s Panasonic.

"Nothing has been finalized regarding cooperation with Tesla," said a Samsung SDI official.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]