Samsung SDI on track with US LFP cell production, expects demand to outstrip production

In brief

Samsung SDI plans to begin producing lithium iron phosphate battery cells for stationary energy storage at its US facilities in October 2026, with deliveries of its containerised SBB 2.0 system expected before year-end. The production line is undergoing mass-production quality validation, while the company has secured LFP cathode materials and other components from mainly South Korean and US suppliers to establish a supply chain compliant with US restrictions on foreign entities of concern. Samsung SDI said orders already cover a substantial portion of its planned capacity through 2029, and it expects customer demand to exceed available production from 2028, prompting it to consider adding further manufacturing capacity.

The expansion forms part of Samsung SDI’s recovery strategy, centred on US energy storage and European electric vehicle batteries. In the second quarter of 2026, the company returned to operating profit for the first time in seven quarters, supported by demand from AI data centres, utility-scale storage, uninterruptible power supplies and battery backup units, as well as US manufacturing tax credits. Management expects US storage demand to remain strong even if data-centre investment slows, because growing electricity consumption, renewable generation, state storage targets and ageing power grids will continue to increase the need for systems that balance supply and support grid stability.

Source: Energy-Storage.News

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