Tesla has reportedly secured a $2.1 billion agreement with Samsung SDI to supply batteries for its energy storage systems over three years. The deal focuses on products like Megapack and Powerwall, not electric vehicles. Samsung SDI stated that nothing has been finalized yet.
According to a report from the Korea Economic Daily on November 3, 2025, Tesla reached a substantial supply agreement with Samsung SDI worth over 3 trillion won, approximately $2.1 billion. The three-year deal will provide lithium-iron-phosphate (LFP) cells for Tesla's Energy Storage System (ESS) business, marking the first large-scale partnership between the two companies.
The batteries are intended for stationary energy storage, including Megapack units for utility-scale projects and possibly Powerwall for residential use, rather than Tesla's electric vehicles. For years, discussions between Tesla and Samsung SDI centered on 4680 cell production, but this agreement shifts to LFP cells amid Samsung's ramp-up of 46-series production.
This follows Tesla's recent deal with LG Energy Solution for LFP batteries. Currently, Tesla relies on CATL and BYD for its energy storage needs, but the company seeks to diversify suppliers due to tariffs on Chinese products. Tesla is also developing its own LFP cell manufacturing in the US to offset Chinese supply dependence.
Samsung SDI, when contacted, responded that “nothing has been finalized yet,” a typical statement before formal announcements. Tesla has not commented on the report.
Tesla's energy division has seen record deployments, with Megapack installations growing faster than electric vehicle deliveries. CEO Elon Musk has indicated that the energy business could eventually surpass the automotive segment. The International Energy Agency notes the need for 50 times more grid battery capacity by 2040 to achieve net-zero emissions, highlighting the sector's growth potential.
