Tesla is closing in on a multi-billion-dollar battery supply with South Korea’s Samsung SDI. The deal follows another big step in the US automaker’s push to scale its energy-storage business.
Tesla plans to purchase over 3 trillion won, approximately $2 billion, of ESS batteries from Samsung SDI over the next three years, according to a report by the Korean Economic Daily, cited by Reuters. The batteries will be used in Tesla’s large-scale storage products, such as Megapack and Powerwall.
If finalized, the deal would also strengthen Tesla’s position in meeting the increasing global demand for utility-scale storage. For Samsung SDI, this would be one of the company’s largest ESS contracts to date, positioning the firm as a primary global battery supplier along with LG Energy Solution and CATL.
The South Korean company, which supplies batteries to BMW and Rivian, among others, has been gradually expanding its focus from electric vehicles to the renewable energy segment.
Neither party has yet to release an official statement. However, a spokesperson for Samsung SDI told Reuters that ‘nothing has been decided,’ and Tesla has not issued an official comment.
According to industry sources, talks have reached an advanced stage and are expected to be finalized over the coming weeks.
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The deal would also align with Tesla’s broader strategy to diversify its battery supply chain and reduce its reliance on Chinese suppliers. Earlier this year, Tesla signed a reported $4.3 billion deal with LG Energy Solutions for LFP batteries.
A deal with Samsung would see Tesla teaming up with a significant South Korean partner, one that also could help underpin its energy business. This partnership comes at a time when battery storage is becoming a crucial part of the global clean energy transition.