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Samsung SDI Says Talks Underway to Supply Tesla Energy Storage Cells After $2.1 Billion Reports

Tariffs on Chinese batteries are pushing Tesla to diversify suppliers.

Overview

  • South Korean media reported a roughly 3 trillion won (~$2.1 billion) three-year arrangement for Tesla’s Energy Storage System cells, with annual volumes around 10 GWh.
  • Samsung SDI said discussions with Tesla are ongoing and that no details have been finalized, while Tesla did not provide an immediate comment.
  • Reports indicate the cells would be produced at Samsung SDI’s joint venture plant with Stellantis in Indiana by converting some EV battery lines for ESS output.
  • The supply is described as targeted for Megapack and potentially Powerwall rather than Tesla’s vehicles, with some outlets citing start dates that vary, including as early as 2026.
  • Samsung SDI shares jumped as much as about 8% on the reports, and the potential deal would further Tesla’s shift from Chinese suppliers and complement a separate ESS agreement reported with LG Energy Solution.