Samsung SDI Takes 66% of Government Next-Generation AI ESS Project

Six of Nine Winning Consortiums Use Samsung SDI Batteries 21 of 32 Assigned Lines... 'SBB 1.5' to Be Supplied

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By Yoo Min-hwan
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A view of an energy storage system facility in California, U.S., supplied with batteries by Samsung SDI. Photo courtesy of Samsung SDI - Seoul Economic Daily Finance News from South Korea
A view of an energy storage system facility in California, U.S., supplied with batteries by Samsung SDI. Photo courtesy of Samsung SDI

Applicants that adopted Samsung SDI battery cells were selected most frequently in a government bid for artificial intelligence (AI) energy storage system (ESS) project operators, launched to expand next-generation power infrastructure.

According to industry sources on the 10th, the Ministry of Climate, Energy and Environment announced the results of the "AI-Based ESS Construction Support Project" on the same day, naming a total of nine winners: VPP Lab, LG Energy Solution, KEPCO KDN, SK Eternix, HD Hyundai Electric, Gridwiz, Korea East-West Power, and Hyundai Engineering & Construction.

The AI-based ESS construction support project is a government initiative that builds ESS facilities on transmission lines carrying electricity generated from renewable energy and supports their efficient operation through AI.

Of the nine operators selected, six adopted Samsung SDI (006400.KS) battery cells. One operator used LG Energy Solution battery cells, while two used SK On cells.

A total of 32 lines were assigned to the nine operators, with Samsung SDI accounting for 21 of them (65.6%). LG Energy Solution handles 7 (21.9%) and SK On handles 4 (12.6%). Each line requires a battery capacity of 20MWh (megawatt-hours).

Samsung SDI's headquarters, the Giheung plant. Photo courtesy of Samsung SDI - Seoul Economic Daily Finance News from South Korea
Samsung SDI's headquarters, the Giheung plant. Photo courtesy of Samsung SDI

Samsung SDI plans to supply its ESS integrated solution "SBB 1.5" for this project.

SBB 1.5 is an all-in-one product that installs high-nickel NCA (nickel, cobalt, aluminum) prismatic battery cells, along with modules, racks and safety devices, inside a 20-foot container, and can be used immediately once connected to the power grid. Samsung SDI explained that "because it is equipped with prismatic battery cells, it is excellent in terms of performance and safety."

This next-generation AI distribution network project has drawn industry attention as a "preliminary battle" ahead of the government's third ESS central contract market bid, scheduled for around September. In the first bid, Samsung SDI won a landslide victory by securing 76% of the total volume, while in the second bid, SK On led with 50%.

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Original reporting by Yoo Min-hwan for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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