Sungrow to use Samsung SDI battery cells for US energy
Sungrow plans to procure lithium iron phosphate battery cells from Samsung SDI for its energy storage systems, primarily to support its U.S.
Chinese inverter and energy storage supplier Sungrow plans to source battery cells from South Korea's Samsung SDI. A person familiar with the matter told reporters the cells will be used in Sungrow's own energy storage systems, primarily to support deliveries to the U.S. Market.
The source confirmed the cooperation is moving forward but declined to disclose the procurement volume, contract value, or supply schedule. Neither Sungrow nor Samsung SDI responded to requests for comment.
Deal Follows Earlier Reports
The confirmation follows earlier reports from South Korea about a major LFP battery supply negotiation. South Korean industry outlet The Elec reported earlier this month that Samsung SDI was negotiating a three-year agreement with a global energy storage system supplier. The report stated the deal would involve annual supplies of several gigawatt-hours, with a total contract value in the trillions of Korean won. The customer was not named at the time.
The source to ESS News confirmed Sungrow is that customer. The main purpose of the arrangement is to help Sungrow maintain its ability to supply the U.S. Storage market.
U.S. Manufacturing and Supply Chain Shifts
The move comes as suppliers adapt to tightening U.S. Restrictions on China-linked battery components. A logical outcome would be for Samsung SDI to supply Sungrow from its U.S.-based manufacturing plants, though this remains to be confirmed.
Samsung SDI has been expanding its U.S. Energy storage manufacturing through StarPlus Energy, its joint venture with Stellantis in Indiana. The company is converting part of that facility's electric vehicle battery capacity to stationary storage. Samsung SDI plans to begin mass production of prismatic LFP batteries there in the fourth quarter of 2026.
In a related move for its U.S. Supply chain, Samsung SDI signed a three-year agreement in March to procure KRW 1.6 trillion ($1.1 billion) of LFP cathode materials from South Korean supplier L&F starting in 2027. Samsung SDI said these materials would be used to manufacture ESS batteries at StarPlus Energy, as part of efforts to establish a North American supply chain less dependent on China.
A Renewed Partnership
Sungrow and Samsung SDI have a history of cooperation in energy storage. The companies agreed to form a joint venture targeting the Chinese ESS market in 2014. In 2016, they launched a storage manufacturing operation in Hefei, Anhui province, combining Samsung SDI batteries with Sungrow's power conversion and energy management technology.
The renewed cooperation comes at a complex time for Sungrow's U.S. Business. Sungrow has stated publicly it has no current plan to establish U.S. Manufacturing operations. The company has indicated it is seeking greater cooperation with overseas companies in components and services as it adjusts to U.S. Market changes.
Using cells manufactured by a non-Chinese supplier in the United States could help Sungrow diversify its battery supply chain for American projects. However, the future structure of the supply chain remains unclear. It is not yet known where complete battery energy storage systems will be assembled or how they will comply with evolving U.S. Rules on foreign-produced grid equipment.
