Seoul [South Korea], November 4 (ANI): South Korean battery maker Samsung SDI Co. is in talks with Tesla Inc. over the supply of energy storage system (ESS) batteries, as per a report by Pulse, the English service of Maeil Business News Korea.
“Tesla is said to have requested battery supplies from Samsung SDI amid rising ESS demand in North America, driven by increased investment in artificial intelligence (AI) data centre infrastructure,” the report said on Monday.
While the scale of the supply has not been finalized yet, the report notes that the potential deal could be worth trillions of won.
“We are only at the early stage of discussions to expand our supply, and are assessing Tesla’s request and our own production capacity,” the report quoted a Samsung SDI official. “Nothing has been decided regarding supply volumes,” he said.
If Samsung SDI proceeds with supplying ESS batteries to Tesla, their production will most likely take place at the company’s joint battery plant with Stellantis NV in Indiana, the United States.
“During its third-quarter earnings briefing last month, Samsung SDI announced plans to convert the plant’s electric vehicle (EV) battery production line to ESS manufacturing. The company also aims to expand its U.S. ESS battery production capacity to 30 gigawatt-hours (GWh) by the end of next year,” the report said.
Tesla’s move to diversify its suppliers to include both Samsung SDI and LG Energy Solution Ltd. reflects a strategy to reduce reliance on Chinese-made batteries.
With ESS demand surging in North America, fueled by AI data centre growth, Korean manufacturers with local U.S. production bases are becoming increasingly important.
LG Energy Solution is also reportedly in talks with Tesla for additional ESS battery supplies.
“It will take some time for both sides to finalize the supply scale,” the report quoted a company official. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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