Tesla turning towards Samsung SDI for huge ESS battery deal

Samsung SDI is reportedly in final talks with Tesla to supply around 3 trillion won (USD 2.1 billion) worth ofenergy storage system battery cells, signaling the US electric vehicle giant's growing reliance on Korean battery makers amid Washington's push to reduce dependence on Chinese supply chains, as pera report by the Korean Herald.

- AGENCIES

Representative image

According to the report on Tuesday, executives from Tesla’s ESS division visited Korea last week and reached near-final terms with Samsung SDI on a multiyear supply contract. The deal would cover approximately 10 gigawatt-hoursoflithium-iron-phosphate battery cells per year, starting as early as 2026, generating an estimated annual revenue of 1 trillion to 15 trillion won for Samsung SDI.

Tesla CEO, Elon Musk, said on X, “Slightly different versions of the Tesla AI5 chip will be made at TSMC and Samsung simply because they translate designs to physical form differently, but the goal is that our AI software works identically. We will have samplesand maybe a small number of units in 2026, but high volume production is only possible in 2027. AI6 will use the same fabs, but achieve roughly 2X performance. Aiming for a fast follow to AI5, so hopefully mid 2028 for volume production of AI6, AI7 will need different fabs, as it is, more adventurous.”