Tesla has reached a tentative agreement with Samsung SDI to purchase over $2 billion worth of energy storage system batteries, enhancing its capacity for utility-scale energy solutions.
Samsung SDI, a South Korean battery manufacturer, has reportedly struck a deal with Tesla to supply more than 3 trillion won, equivalent to approximately $2.11 billion, in energy storage system (ESS) batteries. This information was first reported by the Korea Economic Daily, although Samsung SDI has yet to confirm the agreement.
The batteries are intended for use in Tesla’s large-scale energy storage products, including the Megapack and Powerwall. If finalized, this deal could significantly bolster Tesla’s ability to meet the growing global demand for utility-scale energy storage solutions.
This potential contract would mark one of Samsung SDI’s largest ESS agreements to date, positioning the company as a leading global battery supplier alongside competitors such as LG Energy Solution and CATL. Samsung SDI has been expanding its focus beyond electric vehicles, previously supplying batteries to manufacturers like BMW and Rivian, and is now increasingly targeting the renewable energy sector.
The agreement aligns with Tesla’s strategy to diversify its supply chain and reduce its dependence on Chinese suppliers. Earlier this year, Tesla entered into a reported $4.3 billion agreement with LG Energy Solutions for lithium iron phosphate (LFP) batteries. Partnering with Samsung, a major player in South Korea’s battery market, would further advance Tesla’s objectives in this area.
This development comes at a critical time as battery storage is becoming an essential component of the global transition to clean energy. The increasing emphasis on renewable energy sources has heightened the demand for efficient and reliable energy storage solutions.
In related news, the U.S. National Highway Traffic Safety Administration (NHTSA) recently announced that Tesla is recalling 12,963 vehicles in the United States due to a defect in a battery pack component that could lead to a sudden loss of drive power. The recall specifically affects certain 2025 Model 3 and 2026 Model Y vehicles.
The issue involves a potential failure in the battery connection, which could result in a sudden loss of drive power, increasing the risk of a crash. To address this safety concern, Tesla will replace the faulty battery pack contactor free of charge for all affected vehicles.
As of October 7, Tesla had received 36 warranty claims and 26 field reports related to this defect. Importantly, the company has stated that it is not aware of any accidents, injuries, or fatalities resulting from this issue. Tesla is actively notifying owners of the affected vehicles to arrange for necessary repairs, and customers can also contact Tesla’s customer service for further information regarding the recall process.
A sudden loss of drive power can disrupt the connection between the battery and the vehicle’s motors, preventing proper acceleration or movement. This could lead to a sudden decrease in speed or even cause the vehicle to stall.
The anticipated agreement with Samsung SDI underscores Tesla’s commitment to enhancing its energy storage capabilities while addressing supply chain challenges in the evolving clean energy landscape.
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