South Korea’s Samsung SDI Co. has confirmed it is in discussions with Tesla Inc. to supply energy storage system (ESS) batteries, signaling a potential major collaboration in the fast-growing renewable energy sector. The talks reportedly focus on high-performance battery packs that could power Tesla’s large-scale energy storage projects, including its Megapack systems.

Discussions Target Growing Global ESS Demand

As global demand for energy storage solutions surges, Samsung SDI aims to expand beyond its traditional electric vehicle battery business into stationary storage applications. Sources suggest that the potential deal with Tesla could cover lithium iron phosphate (LFP) and nickel-based battery technologies, depending on project needs. ESS batteries are increasingly vital for grid stabilization and renewable integration, especially in solar and wind energy systems.

Tesla Expands Supply Chain Amid Battery Competition

Tesla has been diversifying its battery suppliers to meet escalating demand across both its EV and energy divisions. While the company currently sources ESS batteries primarily from CATL and LG Energy Solution, adding Samsung SDI could strengthen supply chain resilience and accelerate expansion of Tesla Energy projects worldwide. Analysts note this move aligns with Tesla’s strategy to secure multi-source battery procurement for flexibility and cost efficiency.

Samsung SDI’s Strategic Push into Energy Storage Market

Samsung SDI has been ramping up its investments in next-generation battery technologies, including solid-state batteries and high-nickel cathode materials. The company recently announced plans to boost its ESS production capacity to meet surging demand from utility and industrial clients. A potential Tesla partnership could significantly enhance Samsung SDI’s presence in the U.S. market, where large-scale renewable projects are multiplying.

Analysts See Win-Win Potential

Industry observers view the talks as mutually beneficial: Tesla would gain a reliable, advanced battery supplier, while Samsung SDI would secure a foothold with one of the world’s leading clean energy companies. If finalized, the agreement could reshape dynamics in the global ESS battery supply chain and mark another milestone in the electrification and sustainability push across industries.