Samsung may have signed a deal with Tesla for ESS batteries

In November 2025, news broke out that Samsung may sign a deal with Tesla where the former will supply the latter with 10 gigawatt-hour (GWh) of lithium phosphate (LFP) batteries for energy storage systems (ESS) over a period of three years. Well, the two companies may have finally signed the deal.

Samsung's division that makes batteries, Samsung SDI, has announced that it has signed a battery supply contract (via The Elec). While the firm is withholding party details, contract amount, and contract price till 1 January 2030, citing business confidentiality, industry experts believe that the party is Tesla.

Tesla is expected to use these batteries for Powerwall, Megapack, and other such products. The former is a battery system aimed at houses, designed for storing energy using solar panels or the electricity grid, and using it as a backup solution or for reducing reliance on the electricity grid. The latter is a battery system for commercial and industrial use for similar purposes.

Tesla has been sourcing ESS batteries from Chinese companies, such as CATL. However, the US government has recently reduced subsidies and increased tariffs on them. To avoid higher costs, Tesla has built its own battery-manufacturing plant. However, it may not be producing enough batteries. As such, the Elon Musk-owned company may be looking to source batteries from other firms. 

There are very few companies in the country that make ESS batteries that Tesla requires. One of them is Samsung SDI. Considering that it is one of the most experienced, technologically advanced, and largest in the segment, and Tesla’s recent deals with the South Korean tech giant, the EV maker may have chosen Samsung. It could strengthen Samsung's position in the battery market.