Samsung SDI (006400.KS) was the sole gainer among major secondary battery stocks on January 10, as news of a multi-trillion-won energy storage system (ESS) battery supply contract in the United States lifted shares.
Samsung SDI closed at 317,500 won, up 2.42% from the previous trading day, according to Korea Exchange data. Other major players in the secondary battery sector posted losses. LG Energy Solution (373220.KS) fell 0.45% to 441,500 won, while SK Innovation (096770.KS) dropped 0.60% to 116,600 won. POSCO Future M (003670.KS) declined 1.56% to 220,500 won. Kosdaq-listed Ecopro (086520.KQ) and Ecopro BM (247540.KQ) also retreated 0.85% and 1.43%, respectively.
The catalyst for Samsung SDI's gains was news of a major contract win. The company announced that its U.S. subsidiary, Samsung SDI America, signed a deal worth approximately 2 trillion won ($1.5 billion) to supply lithium iron phosphate (LFP) batteries for ESS applications with a U.S. energy infrastructure development and operations firm. Deliveries are scheduled to begin in 2027 and continue for approximately three years.
The agreement marks Samsung SDI's first ESS LFP battery supply contract in the United States. The company said it is in discussions with other global customers for additional ESS battery supply deals.
Samsung SDI has been targeting the North American ESS market by converting some production lines at its joint venture with Stellantis in the U.S. to ESS manufacturing. Analysts attribute the major contract to the company's rapid establishment of local production capabilities to meet demand.
The company's decision to supply LFP batteries is also noteworthy. LFP batteries use lithium, iron, and phosphate as cathode materials and offer lower energy density compared to nickel-cobalt-manganese (NCM) batteries, but are cheaper and safer. Samsung SDI had previously focused on NCM batteries but adjusted its strategy to respond to growing LFP demand.
