Samsung SDI plans to begin production of prismatic lithium iron phosphate (LFP) battery cells for stationary battery energy storage systems (BESS) in the US in October 2026, according to the company. The production line is currently undergoing mass production quality validation, with the first deliveries of the Samsung Battery Box (SBB) 2.0 scheduled before the end of the year. At the same time, Samsung SDI expects demand to exceed available production capacity from 2028 onward.
The company announced last year that it aims to establish 30 GWh of annual BESS cell production capacity in the US by the end of 2026. Against this backdrop, Samsung SDI says it is already evaluating options to expand capacity further.
Non-FEOC Supply Chain a Key Focus
According to Samsung SDI, it has secured LFP cathode materials and other key components through partnerships with suppliers in South Korea and the US to establish a supply chain that complies with US Foreign Entities of Concern (FEOC) requirements. The effort follows changes to US tax incentive rules that restrict eligibility for projects using certain imported battery cells.
The company says orders received to date already cover a substantial portion of its planned production capacity through 2029. During the second quarter, Samsung SDI also signed long-term supply agreements with US BESS customers, although it did not disclose details. In addition to LFP technology, the company is developing sodium-ion batteries for data centers and large-scale energy storage systems but has not provided a commercialization timeline.
