Samsung’s 2025 Battery Strategy: Inside the Multi-Billion Dollar Push for Global Dominance

Industry Adoption: Samsung’s Shift from EV Foundation to ESS Domination

Between 2021 and 2024, Samsung’s battery strategy was defined by foundational, large-scale commitments to the electric vehicle (EV) market. The company cemented its role as a core supplier for major automakers by forming multi-billion-dollar joint ventures, notably the StarPlus Energy projects with Stellantis and a parallel $3 billion partnership with General Motors. This period focused on securing long-term demand for its PRiMX branded lithium-ion batteries and establishing a massive manufacturing beachhead in North America. The partnerships extended to EV startups like Rivian and established players like Hyundai, signaling a broad effort to embed its technology across the automotive sector. While energy storage was a factor, highlighted by its role in projects like the Edwards Sanborn facility, the primary commercial thrust was on powering the next generation of EVs.

The landscape has dramatically shifted in 2025. Samsung is executing a highly aggressive pivot to dominate the Battery Energy Storage System (BESS) market alongside its EV ambitions. This is not an incremental change but a strategic inflection point. The announcement of a plan to ramp up US-based BESS manufacturing capacity to an immense 30 GWh by the end of 2026 is the clearest signal of this new focus. This move is timed to capitalize on the booming grid-scale storage market and incentives like the Inflation Reduction Act (IRA). The variety of commercial activity has exploded, moving beyond automotive supply to high-stakes negotiations for a potential $2.1 billion ESS battery deal with Tesla for its Megapack and Powerwall products. Further, Samsung C&T is now actively proposing and developing large-scale BESS projects globally, from Australia to the US, in partnership with entities like Delta Power and LS ELECTRIC. This rapid expansion from a component supplier to a key player in project development and a potential top-tier ESS provider demonstrates a full-spectrum adoption strategy, targeting every major segment of the battery value chain.

Table: Samsung’s Strategic Battery and Energy Storage Investments (2022–2025)

Table: Samsung’s Key Battery and Energy Storage Partnerships (2021–2025)

Geography: Samsung’s North American Power Play Expands Globally

Between 2021 and 2024, Samsung’s geographic focus was overwhelmingly centered on establishing a manufacturing stronghold in North America. The twin gigafactory announcements in Kokomo, Indiana, with Stellantis and the subsequent $3 billion JV plan with General Motors underscored a deliberate strategy to build capacity within the US to serve its largest automotive partners and leverage IRA incentives. This was complemented by strategic upstream investments, such as the stake in Canada Nickel Co., to secure the North American raw material supply chain. While production capacity was also expanded in Malaysia and Hungary to serve Asian and European EV markets respectively, the lion’s share of new strategic capital was directed at the US.

Since the beginning of 2025, this North American focus has not only deepened but also expanded into a new commercial dimension: project deployment. The plan to dedicate 30 GWh of US manufacturing to BESS is a direct move to serve the domestic grid-scale storage market. Simultaneously, Samsung C&T has become a prolific project proponent across the globe. We see a flurry of activity in Australia, with proposals for multiple large-scale BESS projects in New South Wales (80 MW / 320 MWh) and Queensland (200 MW), alongside project explorations with partners like Delta Power. This indicates a strategic shift from simply manufacturing batteries to actively participating in the downstream development of energy projects in key renewable energy markets. The US remains the nexus of manufacturing investment, but Australia is emerging as a critical target market for BESS deployment, demonstrating a more geographically diversified and vertically integrated global strategy.

Technology Maturity: From Scaling Lithium-Ion to Commercializing Solid-State

In the 2021–2024 period, Samsung’s technology strategy was centered on scaling and branding its proven lithium-ion technologies. The launch of the PRiMX brand in 2022 for all its battery cells was a commercial move to standardize its premium offering for major partners like Stellantis. The focus was on mass production of existing cell formats, such as the 21700 cylindrical cells at its new plant in Malaysia. While solid-state batteries (SSBs) were part of the long-term R&D narrative, concrete commercialization plans and public partnerships were nascent. The company did, however, signal its intent to diversify chemistries by announcing a two-track strategy to develop both high-energy NCA and cost-effective LFP batteries for the ESS market, acknowledging the need for different solutions for different market segments.

The period from 2025 to the present marks a significant acceleration in technology commercialization and a firming of future roadmaps. We see the mass production of next-generation formats, with the 46-series cylindrical cells entering production in May 2025. In the ESS space, the technology has moved from strategy to product with the debut of the Samsung Battery Box (SBB) 2.0, a containerized, grid-ready solution scheduled for US production in 2026. Most critically, the path to all-solid-state batteries has shifted from the lab to a clear commercialization track. The October 2025 trilateral agreement with BMW Group and Solid Power creates a powerful consortium to validate and scale ASSB technology. Samsung has put a number on its ambition, targeting an industry-leading energy density of 900 Wh/L and operating a dedicated pilot line (“S-Line”). This move from internal R&D to a formal, public partnership with a major OEM and a technology specialist signals that the race to commercialize SSBs, targeted for 2027-2030, is now a core part of Samsung’s active, near-term strategy.

Table: SWOT Analysis of Samsung’s Battery and Energy Storage Strategy

Forward-Looking Insights and Summary

The data from 2025 paints a clear picture: Samsung is no longer just building a foundation; it is constructing a global battery empire. The year ahead will be a test of execution on an unprecedented scale. The most critical signal to watch is the finalization of the reported $2.1 billion ESS supply agreement with Tesla. Securing this deal would not only provide a massive, diversified revenue stream but would also serve as the ultimate validation of Samsung SDI’s technology and its strategic pivot to the stationary storage market. Failure to land this contract would force a rapid and challenging search for an alternative offtaker of similar scale.

Market actors should pay close attention to progress on the 30 GWh US BESS manufacturing ramp-up. Any delays in construction or qualification for IRA credits could impact Samsung’s ability to fulfill large-scale orders and compete on price with established players. This initiative is the linchpin of its North American ESS strategy. Concurrently, tangible progress from the ASSB pilot line and the partnership with BMW and Solid Power will be a key indicator of long-term leadership. While the 2027 mass production target remains ambitious, any milestone announcements will significantly influence investor sentiment. Samsung’s strategy is a high-stakes balancing act: spending billions on scaling today’s technology while simultaneously investing heavily to invent tomorrow’s. The coming year will reveal if it can manage this immense capital and operational challenge while fending off rivals who are just as determined.

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Frequently Asked Questions

What is the biggest change in Samsung’s battery strategy in 2025?
The biggest change is a major strategic pivot to dominate the Battery Energy Storage System (BESS) market alongside its established EV battery business. This is highlighted by its plan to build 30 GWh of US-based BESS manufacturing capacity by 2026 and pursue large-scale supply deals, such as the reported $2.1 billion negotiation with Tesla for its Megapack and Powerwall products.

Why is Samsung investing so heavily in manufacturing in the United States?
Samsung is investing heavily in the U.S. to capitalize on significant financial incentives from the Inflation Reduction Act (IRA) and to be closer to its key customers. By building plants in North America, Samsung can secure its supply chain for major automotive partners like Stellantis and GM and directly serve the rapidly growing domestic market for both EVs and grid-scale energy storage (BESS).

What are the main risks associated with Samsung’s ambitious strategy?
The primary risks are execution and capital intensity. The strategy involves massive, simultaneous investments in EV plants, new ESS factories, and R&D for future technologies. This exposes Samsung to significant financial pressure and the execution risk of potential construction delays or labor shortages. It also faces intensifying competition from rivals who are also aggressively pursuing next-generation batteries and cost-effective LFP chemistries.

Is Samsung developing next-generation battery technology beyond lithium-ion?
Yes. While scaling up current lithium-ion technology like its PRiMX and 46-series cells, Samsung has made a significant move to commercialize all-solid-state batteries (ASSBs). In October 2025, it formed a key partnership with BMW Group and Solid Power to accelerate ASSB development, with a goal of achieving an industry-leading energy density of 900 Wh/L and targeting mass production between 2027 and 2030.

How is Samsung’s approach to the energy storage (ESS) market different from its EV market approach?
In the EV market, Samsung’s strategy was defined by creating deep joint ventures with a few major automakers (e.g., Stellantis, GM) to secure long-term, captive demand. In the ESS market, its strategy is broader. It includes acting as a component supplier to top-tier customers like Tesla, marketing its own integrated solutions like the Samsung Battery Box (SBB), and having its affiliate, Samsung C&T, actively develop and invest in large-scale BESS projects globally.